Boohoo execs reportedly considering break-up of business

Executives for fast fashion giant Boohoo Group PLC are believed to be mulling a break up of the business, with several shareholders reportedly urging the retailer to spin off some of the better-performing brands.

Sources for The Times told the media outlet that there was potential value in spinning off or selling Debenhams and Karen Millen in an attempt to secure a better stock price, which has dropped over 85 percent over the past five years.

While there is no certainty regarding how such a split could take place, with the sale of brands like Boohoo and PrettyLittleThing also believed to be among consideration, co-founders Mahmud Kamani and Carol Kane were said to be mulling all options.

Boohoo has been battling waning sales in recent years, a sentiment that continued into the fiscal year 2024, when group GMV fell 13 percent to 1.809 million pounds.

The company remained optimistic, however, towards its core brands – Boohoo, BoohooMan, PrettyLittleThing, Karen Millen and Debenhams – where a sales decline improved from -9 percent in the first half of the year to -4 percent in the second.

Commenting on the annual trading update, John Lyttle, Boohoo Group CEO, said: "Despite difficult market conditions, caused by high levels of inflation and weakened consumer demand, we made continued progress in the year. I am particularly encouraged with the ongoing trend of improved performance in our core brands.”