"Boohoo Group has launched a £35m share placing as it seeks to strengthen its balance sheet and support its long-running turnaround, sending its shares down 10 per cent in early trading. The Manchester-based fast-fashion retailer, which rebranded last year as Debenhams Group to reflect the stronger performance of that label, said the equity raise would provide additional liquidity and help create what it described as an "optimal capital structure"."
"The placing, priced at 20p per share, has already secured indicative backing of more than £24m from existing shareholders, including co-founder Mahmud Kamani, chief executive Dan Finley and director Iain McDonald. The company said it would engage institutional investors in the coming days to secure further commitments. Boohoo, founded in 2006 by Kamani and Carol Kane, rose to prominence by selling low-cost, on-trend fashion directly to consumers online."
Boohoo launched a £35m share placing priced at 20p per share to strengthen its balance sheet and support its ongoing turnaround. The placing has matched over £24m of indicative backing from existing shareholders, including co-founder Mahmud Kamani, chief executive Dan Finley and director Iain McDonald, with further institutional engagement planned. Shares fell around 10% in early trading and have declined about 22% over the past year to just over 20p. The group rebranded as Debenhams Group to reflect stronger performance of that label. Boohoo is in advanced talks to amend loan covenants, contingent on the capital raise. The company expects adjusted EBITDA of around £50m for the year to 28 February.
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