• Home
  • News
  • Business
  • JP Morgan becomes second largest shareholder in Boohoo

JP Morgan becomes second largest shareholder in Boohoo

By Rachel Douglass

21 Oct 2022

Business

Image: Boohoo

Global investment giant JP Morgan has snapped up more shares in Boohoo, making it the fast fashion retailer’s second largest shareholder.

The firm has acquired a 5.1 percent stake in the group, according to a document filed with the London Stock Exchange.

The move means JP Morgan is now the largest institutional investor in the Manchester-based company.

Boohoo’s largest single shareholder is still its co-founder Mahmud Kamani.

T. Rowe Price International is now its third largest investor, after it cut its stake in the group from 9.7 percent to five percent in August.

It comes after cost-of-living pressures increased its hold on the group, leading Boohoo into a loss and experiencing a sales slump at the first half of the financial year.

In its financial report for the six months to August 31, 2022, it made a pre-tax loss of 15.2 million pounds, compared to its 24.6 million pound profit during the same period in 2021.

Boohoo had also reported a 10 percent revenue drop to 882.4 million pounds.

The retailer is currently facing an ongoing investigation into its sustainability claims, with a UK watchdog alleging possible ‘greenwashing’.

If evidence of such practices are found, the company could face enforcement action through the courts if deemed necessary.

BooHoo