Boohoo faces a setback with the cancellation of its £60 million office sale in London.
- The planned sale was dropped following concerns highlighted in a survey by the interested Israeli investor.
- Boohoo bought the office for £72 million in 2021 and hoped to ease its £47 million debt with the sale.
- The building in Soho was put up for sale in August ahead of debt repayment due next year.
- Negotiations are ongoing, as Boohoo seeks to appoint new board members amid internal disputes.
Boohoo, a major player in the fashion industry, has encountered an obstacle with the aborted sale of its headquarters in London, valued at £60 million. This setback was reported by The Telegraph, which noted that an Israeli investor retracted interest due to issues highlighted during a survey.
The building, located at 10 Great Pulteney Street in Soho, spans 43,963 square feet across six storeys. Boohoo initially purchased it for £72 million in 2021. The sale was intended as a strategic move to offset a looming debt repayment of £47 million due in August next year.
The decision to sell the property was taken in August. It was part of Boohoo’s broader financial strategy to address upcoming liabilities. Despite the current roadblock, Boohoo has confirmed that discussions regarding the sale are still active. According to a spokesperson, they remain engaged in talks about the property.
The timing of these negotiations is critical, as shareholders are poised to vote soon on resolving ongoing tensions. This vote includes appointing Mike Ashley and restructuring expert Mike Lennon to the Boohoo board, signalling possible shifts within the company’s governance.
The situation highlights Boohoo’s financial maneuvers and strategic adjustments in response to market conditions and internal challenges.
Boohoo continues to navigate financial and corporate changes despite the setback in selling its London office.
