Boohoo Group is rebranding as Debenhams Group and revamping its business model to navigate the challenging online retail landscape. CEO Dan Finley, who took charge recently, announced the transformation, inspired by the successful turnaround of Debenhams, which Boohoo acquired in 2021.
Debenhams now generates gross merchandise value (GMV) of 654 million pounds, with net sales of 205 million pounds and a 12 percent EBITDA margin. Finley aims to replicate this success by adopting a ‘stock-lite and capital-lite’ marketplace approach for the company’s youth brands, including Boohoo, PrettyLittleThing, and BoohooMan, which have a combined GMV of over 1.5 billion pounds.
The restructuring includes heavy discounting to reduce stock, shutting the US distribution center, selling London offices, and cutting costs. Karen Millen has been repositioned as a premium digital-first brand. Full-year GMV fell 10 percent, with revenue down 16 percent to 1.22 billion pounds.
Market analysts remain skeptical, citing Shein’s dominance and shifting consumer trends. Shares dropped 4.61 percent to 0.26 pounds following the announcement. The name change requires shareholder approval on March 28. Finley remains optimistic, calling the move a ‘defining moment’ for the company’s future.
