Boohoo Group has repaid £50m of its £97m term loan amidst its recent refinancing efforts.
- The Kamani family’s investment has been pivotal in supporting Boohoo’s financial turnaround.
- The company raised £39.3m through a placing, subscription, and retail offer to aid this process.
- Boohoo Group reported significant financial losses in the first half of 2024, prompting these changes.
- CEO Dan Finley highlighted the group’s strategic shift towards streamlined operations.
Boohoo Group has initiated a significant financial manoeuvre by repaying £50 million of its £97 million term loan, as part of its broader refinancing strategy announced recently. This repayment is noteworthy, considering the challenging financial landscape the company has faced in recent months.
Key to this development is the financial backing from the Kamani family. Mahmud Kamani, co-founder of Boohoo Group, and his family infused a substantial £15.3 million into the company. This contribution included £5.1 million from Mahmud, £1 million from his sister Rabia Kamani, who is also a minority shareholder, £6.2 million from his son Samir Kamani, the CEO of BoohooMan, and £3 million from his other son Umar Kamani, co-founder of PrettyLittleThing. This family investment has been instrumental in stabilising the company’s finances.
Earlier, on 14 November, Boohoo Group sought £39.3 million through a combination of placing, subscription, and retail offer, as they reported a significant pre-tax loss of £147.3 million for the six months leading up to 31 August 2024. This move was part of the company’s strategy to mitigate financial losses and reinforce its capital structure.
Dan Finley, newly appointed as CEO on 1 November, expressed confidence in the company’s financial strategy, following the successful completion of the oversubscribed placing. He stated, “Following the conclusion of the recently announced oversubscribed placing, we are today pleased to announce the repayment of £50m of our term loan.” He emphasised the company’s efforts in reducing stock levels to become a more efficient and value-driven entity.
The company’s proactive measures reflect a broader initiative to optimise operations and enhance shareholder value. By focusing on leaner business practices, Boohoo Group is positioning itself to better navigate the complexities of the current economic climate.
Boohoo Group’s strategic financial restructuring underscores its commitment to achieving long-term stability and growth.
