PrettyLittleThing boss Umar Kamani tipped to take over at Boohoo, after shock exit by CEO John Lyttle

Umar Kamani, the billionaire founder of UK online fashion house PrettyLittleThing, is being widely tipped to take on the role of Boohoo Group CEO, after John Lyttle announced his departure today after five tumultuous years in the job.

Industry insiders are predicting Kamani, 36, is favourite to succeed Lyttle as chief executive of the group, which owns Debenhams, PrettyLittleThing and Karen Millen.

Last month, the Manchester entrepreneur made a dramatic return to PrettyLittleThing after previously stepping away from the business he built – vowing to ‘bring the beautiful brand back to where it belongs’. 

Boohoo’s chief executive Lyttle is standing down as the struggling fast-fashion retailer embarks on a review of its operations and brands – ‘to unlock and maximise shareholder value’. 

Lyttle has endured five years of highs and lows at Boohoo, and has said he’ll work with the brand’s board until any successor – predicted by industry insiders to be Kamani – is in place

Lyttle joined the Manchester-based group in 2019, having served as Primark’s chief operating officer for almost nine years, during which time the firm’s operating profits and sales more than doubled.

Like many online fashion brands, Boohoo enjoyed enormous growth after the Covid-19 pandemic led to clothes shops temporarily shutting or being subject to significant operating restrictions.

Demand has since slowed and trading has been further hit by supply chain issues, rising cost-of-living pressures, high customer return rates, and heavy competition from the likes of Chinese rival Shein.

Boohoo shares have plummeted by more than 90 per cent from their peak of 413p in June 2020. They were 0.3 per cent lower at 31.8p on Friday morning.

Boohoo co-founders Mahmud Kamani and Carol Kane with outgoing boss John Lyttle at New York Fashion Week in 2022

Kamani returned to the online fashion empire he founded PrettyLittleThing last month, telling MailOnline he intended to ‘bring the beautiful brand back to where it belongs’

Boohoo’s turnover slumped by over £300million to £1.5billion in the financial year ending February, partly owing to weaker domestic demand, while its pre-tax losses jumped to £159.9million, from £90.7million the previous year.

Revenues have continued to fall, shrinking by 15 per cent to £620million in the six months to August, the retailer reported on Friday.

Lyttle told investors: ‘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.’

Boohoo further revealed it had struck a £222million debt refinancing deal to help fund its future development.

The package includes a £97million term loan, which must be repaid by August next year, and a £125million revolving credit facility running to October 2026.

Alongside this, Boohoo said it was looking to ‘unlock and maximise shareholder value’ because it believes the business ‘remains fundamentally undervalued.’

The businessman said PLT has ‘lost touch with what made is so special’, their loyal customer base, in recent years (pictured with Molly-Mae Hague in April 2023) 

Mahmud Kamani, executive chairman and co-founder of Boohoo, said: ‘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 maximising shareholder value.’

Founded in 2006, the company attracted controversy in the summer of 2020 after a Sunday Times investigation discovered that some of its suppliers in Leicester were paying workers below the minimum wage.

A review by Alison Levitt KC concluded that the firm’s monitoring of its Leicester supply chain was ‘inadequate’ but said it did not deliberately profit from the poor working practices.