28th Sep 2024 11:17
(Alliance News) - boohoo Group PLC executives are considering breaking up the Debenhams owner, The Times reported Friday.
Several shareholders are understood to have urged the Manchester, England-based fast fashion retailer to break up the company and spin off some of its better-performing brands, aimed at improving its stock price.
https://www.thetimes.com/business-money/companies/article/boohoo-bosses-mulling-over-break-up-of-business-ql0ct82bv
boohoo shares closed 2.0% higher at 29.44 pence each on Friday in London. They were 89% lower than 263.10p five years ago, and 8.0% lower than 32.00p a year ago.
Sources indicated a potential value in spinning off or selling Debenhams and Karen Millen, and selling young fast-fashion brands such as Boohoo, BoohooMan and PrettyLittleThing.
There was no certainty that the company would be broken up or how it would be divided, but its Co-Founders Mahmud Kamani and Carol Kane were considering all options, according to insiders.
Back in May, boohoo reported a pretax loss of GBP159.9 million in the financial year that ended February 29, widened from GBP90.7 million the year before, as revenue fell by 17% to GBP1.46 billion from GBP1.77 billion.
Further at that time Chief Executive Officer John Lyttle said that boohoo was well positioned to return to growth that is both sustainable and profitable.
By Tom Budszus, Alliance News slot editor
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