Debenhams Group is weighing the sale of Pretty Little Thing and reviewing long-term options for distribution centres in the US and Burnley as part of restructuring. Chief executive Dan Finley reported around £50 million in annualised cost savings and a 30 per cent reduction in headcount since his arrival. For the year to 28 February adjusted ebitda rose 3 per cent to £41.6 million while revenue fell 12 per cent to £790.3 million, producing an operating loss of £42.6 million. All brands including Karen Millen, Nasty Gal and Dorothy Perkins are trading profitably on an adjusted ebitda basis. The group expects earnings for continuing operations to improve in the first half of 2026 amid shareholder tension with Frasers Group.
Debenhams Group is considering the sale of Pretty Little Thing as part of a wider restructuring effort aimed at stabilising the struggling fashion retailer. Chief executive Dan Finley, who took charge last November after the resignation of John Lyttle, said he would leave "no stone unturned" in attempts to turn around the group, which rebranded from Boohoo earlier this year.
The company said on Tuesday it had already achieved around £50 million in annualised cost savings since Finley's arrival, including a 30 per cent reduction in headcount. Alongside a potential disposal of Pretty Little Thing, Debenhams is also "assessing long-term options" for distribution centres in the US and Burnley, Lancashire. For the 12 months to 28 February, adjusted ebitda rose 3 per cent to £41.6 million, but revenue slipped 12 per cent to £790.3 million.
All of Debenhams' brands - which also include Karen Millen, Nasty Gal and Dorothy Perkins - are currently trading profitably on an adjusted ebitda basis, and the group said it expects earnings for continuing operations to improve in the first half of 2026. Shares in Debenhams ended flat on Tuesday at 14½p. The latest moves come against a backdrop of tension with Debenhams' biggest shareholder, Mike Ashley's Frasers Group, which has repeatedly attacked the retailer's financial performance as a "catastrophe".
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