Boohoo Group is actively exploring the sale of its Soho office, initially acquired for £72 million in 2021.
- Current discussions with potential buyers for the 43,963 sq ft office on Great Pulteney Street are ongoing.
- The company is considering a sale and leaseback arrangement to remain operational in the building.
- Boohoo Group faces financial challenges, with a notable refinancing need for its credit facility.
- The office accommodates several brand headquarters and showrooms, with recent changes indicating strategic regrouping.
Boohoo Group is reportedly in discussions to sell its office building located at 10 Great Pulteney Street, London. Acquired for £72 million in 2021, the property spans approximately 43,963 square feet. The sale is under consideration as part of a sale and leaseback transaction, allowing Boohoo to continue operations there if an agreement is reached.
In the previous year, the office was listed with a price expectation of around £60 million. However, the current asking price remains unclear as negotiations with prospective buyers proceed. This move is viewed as part of Boohoo’s broader financial restructuring efforts amidst refinancing discussions led by advisors from FTI.
The five-story Soho office currently supports 400 to 500 employees, housing several London-based brand operations of the group. These include Karen Millen, Coast, Oasis, Debenhams, Dorothy Perkins, Burton, and Wallis—brands acquired between 2019 and 2021. The building also contains essential roles in product, marketing, technology, and central support services.
In September 2023, the Debenhams brand launched a beauty showroom within the building, and there’s anticipation of a new 6,000 sq ft group showroom following the closure of their former space on Great Portland Street.
Boohoo Group has faced reductions in employee numbers, with a notable redundancy consultation involving approximately 100 London staff earlier in January 2023 as it streamlined operations under the Debenhams brand umbrella. This aligns with recent strategic repositioning within the company.
The group’s financial strategies are under scrutiny, particularly with its £325 million unsecured revolving credit facility due in part next year and fully by 2026. As Boohoo navigates this financial landscape, the sale of its Soho office appears as a tactical move to aid liquidity and operational flexibility.
Boohoo Group’s decision to explore the sale of its Soho office underscores its strategic efforts to enhance financial stability amidst evolving market conditions.
