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Boohoo’s parent company has rebranded as Debenhams Group as it hailed the turnaround of the department store brand it bought out of administration three years ago.
Boohoo said it has successfully completed an overhaul of Debenhams since it took over the brand in 2022 and that it is now a “majority contributor to group profitability”.
It said it will roll out the operating model at Debenhams across the wider firm, using the overhaul at the brand as a “blueprint for the wider turnaround of the group”. “Reflective of this major strategic change, the group will go forward as Debenhams group with immediate effect,” Boohoo said.
Shares in the London Stock Exchange-listed company were up around one per cent in early morning trading following the announcement and wider trading update, though it remains 18 per cent down since the start of the year.
Along with fellow British fashion brand Asos, the Boohoo Group’s share price has suffered a huge erosion since the post-pandemic years which saw them both boom. Boohoo is down 89 per cent over a five-year period, with Asos similarly down 87 per cent across that period.
Both have struggled with the costs of quick fashion transitions, as well as cheaper competitors oversees such as Shein – the company still also seeking a London listing this year – and Boohoo also needed to overcome supply chain issues and allegations of labour exploitation.
More recently, the Boohoo board had to fight off a challenge from major shareholder Mike Ashley, owner of Frasers Group, who attempted to place himself on the board and force a change of direction.
Group chief executive Dan Finley – who was promoted to the top job in November 2024, having previously led the Debenhams brand – said: “Debenhams is back. The iconic British heritage brand, bought out of administration, has been successfully turned around.
“Rebuilt for the future and transformed into Britain’s leading online department store.”
He added: “We go forward as Debenhams Group. This is a defining moment in our journey, reflective of our new strategy, new leadership and new beginnings.”
But he admitted he had “inherited significant challenges” since taking the helm, with Boohoo having struggled amid sliding sales and the high-profile spat with Ashley.
Initially, analysts had thought that the turnaround under Mr Finley would focus on a breakup of the group, with Debenhams one of the brands which might be sold off. Instead it becomes the focus for the strategy reset, albeit no longer with a high street presence.
The Boohoo brand will continue, as will other fashion brands owned by the group, such as Karen Millen and PrettyLittleThing.
Shareholders will need to formally approve the wider listed company’s name change, with a meeting scheduled for them to vote on the change on March 28.
“The turnaround of our youth brands is under way and will take time,” said Mr Finley. “I can see their future potential as they evolve into fashion-led marketplaces and adopt a leaner operating model.”
In a full-year trading update also on Tuesday, the group said sales at the firm fell to £1.2 billion in the 12 months to February, down from £1.5 billion the previous year despite a strong performance at Debenhams.
Revenues at Debenhams jumped to £204.6 million from £186 million the previous year.
Meanwhile, finance director Phil Ellis has been appointed as chief financial officer to replace Stephen Morana, effective immediately.
Additional reporting by PA
