Boohoo Group announces CEO John Lyttle’s departure as it secures key financial backing.
- Lyttle ends a five-year tenure amidst a £222 million refinancing deal for Boohoo Group’s future growth.
- The refinancing package includes substantial revolving credit and term loan arrangements.
- Boohoo undergoes strategic reviews of its divisions including Debenhams and fast fashion brands.
- Amidst financial strains, Boohoo anticipates performance recovery in the latter half of FY25.
Boohoo Group has disclosed that John Lyttle, its CEO for the past five years, will be stepping down. This development coincides with Boohoo securing a significant £222 million debt refinancing deal to propel its next growth phase. The refinancing package aims to streamline Boohoo’s financial structure with a £125 million revolving credit facility maturing in October 2026, complemented by a £97 million term loan due by August 2025. John Lyttle expressed his commitment to the company during the transition, stating, ‘I believe there is huge potential in this business and I will continue to work with the board to drive value for all shareholders whilst a successor is found.’
In line with this transformation, Boohoo’s board is undertaking a review of options for its divisions including well-known brands such as Debenhams, Karen Millen, PrettyLittleThing, and BoohooMan. This strategic review is aimed at unlocking and maximizing shareholder value. The announcement underscores Boohoo’s commitment to evolving its business strategy to meet current and future market demands.
Financially, Boohoo has faced challenges, reporting a 7% drop in gross merchandise value to £1.177 billion and a 15% decline in revenue to £620 million for the six months ending 31 August. Adjusted EBITDA reduced to £21 million, accounting for 3.4% of revenue, indicates the pressures faced by the company. Despite the underperformance, Boohoo forecasts an uptick in the second half of FY25, supported by anticipated growth in GMV and adjusted EBITDA.
The group has notably observed considerable GMV growth in Debenhams’ external marketplace during this period, with an additional 5,000 brands signed on. Boohoo’s executive chairman, Mahmud Kamani, affirmed the board’s focus on making strategic moves to benefit all stakeholders, highlighting that the new lending facilities demonstrate strong backing by their banking partners.
Kamani stated, ‘The business has evolved over the last few years and has an offer that is much wider than our original focus on young fashion. The time is now right to consider options with regard to corporate structure, with the aim of maximizing shareholder value.’ Mahmud Kamani also extended his gratitude to John Lyttle for his contributions, citing the talented leadership team he built as central to Boohoo’s journey toward sustainable growth.
Boohoo’s strategic financial initiatives and leadership transition aim to fortify its position in the competitive retail market.
