Boohoo’s chief executive is stepping down after five years, starting the search for the fast-fashion company’s next boss.
John Lyttle, the former Primark chief operating officer, joined the fast-fashion group in 2019 and informed the board of his intention to stand down this morning.
The board stated that he would continue to work with the leadership team over the coming months while a successor is found “to ensure a smooth transition.”
Lyttle said: “Over the last five years I have been proud to lead the group and 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.”
This comes as the board informed shareholders that it will review options for each division.
It said: “The Board believes that the group remains fundamentally undervalued following the developments of recent years, which have created a business with five core brands.”
Boohoo said its core brands were Debenhams, Prettylittlething, boohoo and boohooMAN as well as Karen Millen.
The company added: “The group has already executed on a series of decisive and robust strategic initiatives to drive operational efficiencies and optimise the cost base over the last 18 months.
“In addition, substantial strategic progress has been made including the reinvigoration of the Debenhams and Karen Millen brands.
“This includes the successful implementation of the Debenhams marketplace strategy, with plans to extend the marketplace model across all the brands.”
Boohoo said: “The board strongly believes there is potential to unlock shareholder value and is exploring options to deliver on this.”
Boohoo launches debt financing deal
Separately, the group also announced this morning that it has signed a new £222m debt financing agreement, which will provide financing for the next growth development phase.
The facility comprises a £125m revolving credit facility that runs to October 2026 and a £97m term loan that is repayable by August 2025.
Law firm Ashurst and Rothschild & Co advised the group on the refinancing.
Over the six months to 31 August, the group said Gross Merchandise Value (GMV) pre returns had fallen seven per cent to £1.18bn with GMV sales falling fastest in the US (18 per cent).
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by £10m from £31m in the same period last year to £21m.
The group’s adjusted EBITDA margin fell from 4.3 per cent to 3.4 per cent.
Boohoo is expected to publish its results for the six months ended 31 August 2024 and early November 2024.
Mahmud Kamani, group executive chairman noted: “We are delighted to have agreed a new lending facility which shows the support of our existing banks and their confidence in the group.”
“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,” he added.