Boohoo’s attempt to sell its London head office for £60 million hit a roadblock when an Israeli investor backed out, complicating the retailer’s financial recovery efforts.
- The investor pulled out due to issues highlighted in a survey of Boohoo’s Soho office building, situated at 10 Great Pulteney Street.
- Originally purchased for £72 million in 2021, the property was listed for sale in a bid to address a significant £47 million debt repayment due next year.
- Boohoo is actively seeking new buyers for the office, as confirmed by a company spokesperson amidst ongoing financial challenges.
- The situation arises as Boohoo’s shareholders prepare for a key vote concerning board appointments, potentially affecting the retailer’s strategic direction.
Boohoo, the fashion retailer, recently faced a challenge when a planned sale of its London head office fell through. An Israeli investor withdrew from the £60 million deal due to concerns that emerged following a comprehensive survey of the property at 10 Great Pulteney Street, Soho. This unexpected development impacts Boohoo’s strategy to manage its financial obligations, particularly a looming £47 million debt repayment due by next August.
The building, which spans 43,963 square feet and six stories, was initially purchased by Boohoo in 2021 for £72 million. The current sale attempt was anticipated to result in a loss, but was deemed necessary to address the company’s financial commitments. Despite the setback, Boohoo remains in active negotiations with potential buyers to finalize the sale.
A Boohoo spokesperson stated, “We are in active negotiations with regard to the sale of our London office,” indicating continued efforts to find a suitable buyer. This statement reflects the ongoing challenges Boohoo faces in stabilizing its financial position while seeking strategic ways to offset its debt.
Concurrently with the office sale developments, Boohoo’s shareholders are gearing up for a significant vote on December 20. This vote is set to resolve tensions between the fashion group and Frasers, as Boohoo considers appointing Mike Ashley and restructuring expert Mike Lennon to its board. This decision could play a crucial role in guiding the company’s future direction and response to financial hurdles.
Boohoo’s faltering office sale underlines its ongoing financial challenges as the retailer navigates debt management and strategic board decisions.
