Boohoo Group is undergoing significant changes with the exit of CEO John Lyttle amidst a new debt financing deal.
- John Lyttle steps down as Boohoo’s CEO but will remain to aid in the leadership transition.
- The group has secured a £222m debt financing agreement to support its future development.
- Revenue for the first half of 2024 fell by 15% to £620m, impacting financial performance.
- Boohoo aims to enhance shareholder value despite current financial pressures.
Boohoo Group is facing pivotal changes with the resignation of its Chief Executive Officer, John Lyttle. Although he is leaving his position, Lyttle has committed to collaborating with the leadership team and board until a new successor is appointed. He expressed pride in leading the group over the past five years and aims to ensure a smooth transition during this period.
The company has finalised a £222 million debt financing agreement, which includes a £125 million revolving credit facility available until October 2026 and a £97 million term loan maturing in August 2025. This arrangement, facilitated by Ashurst and Rothschild & Co, is intended to equip Boohoo for the next phase of its growth, following a challenging financial period.
During the first half of 2024, Boohoo’s revenue decreased by 15% compared to the previous year, recorded at £620 million. Furthermore, the adjusted EBITDA margin shrank from 4.3% to 3.4%, and the Gross Merchandise Value (GMV) fell by 7% to £1.177 billion. Despite these setbacks, the company is investing further into its brands, aiming for improved financial outcomes in the latter half of the fiscal year.
Mahmud Kamani, the group’s executive chairman, emphasised the board’s commitment to taking strategic actions that will serve all stakeholders’ interests. He highlighted that the newly agreed lending facility demonstrates the confidence and support of the existing banks. Kamani noted the business’s evolution beyond its original focus and the importance of reevaluating the corporate structure to maximise shareholder value.
Boohoo Group is poised for strategic growth despite leadership changes and recent financial challenges.
