Boohoo Group Plc’s share price has climbed more than 14% today (as of 1.30pm) after it revealed a £175m refinancing deal.
The listed retailer, which now trades as Debenhams Group, has extended its financing facility amid speculation over a delay in publishing its full-year results.
The three-year facility gives it access to funding of up to £175m and extends to August 2028, replacing its previous £125m revolving credit facility, which was originally due to mature in October 2026.
It said the move “significantly enhances” its financial flexibility and will “enable the group to deliver its new multi-year turnaround strategy”.
The new facility is provided by a number of financing parties, led by TPG Angelo Gordon. The interest rate has increased to the Bank of England base rate plus 7.3%.
“We have put in place a new facility, 12 months early, with strong lenders, that aligns and supports our new strategy – supercharging Debenhams and turning around our youth fashion brands,” said CEO Dan Finley. “This follows a comprehensive and competitive review of the market.”
Boohoo has seen its share price drop in recent months. It is down 40% in the year to date at the time of writing.
We recently reported how speculation is growing on exactly when the under-pressure retailer will publish its full-year results for the 12 months to February 28th, 2025. It has until the end of August to do so.
Last year boohoo – which serves millions of customers across its Debenhams, Karen Millen, boohoo, MAN and PLT brands – published its results for the 12 months to February 29th, 2024, on May 8th – sparking wild speculation as to the reasons for the apparent delay.
The Telegraph, Retail Gazette and Sky News had all reported that the fashion brand’s owners were in talks over a debt package worth as much as £175m.
The feverish speculation over possible refinancing prompted the company to take the unusual step of issuing a statement to the London Stock Exchange, saying: “Shareholders are reminded that it has in place an existing £125m RCF (revolving credit facility) which does not expire until October 2026. It continues to review its debt facilities, in the ordinary course of business.”
‘Let’s cut the bullsh*t’: ZOO Digital slammed over unpaid invoices
Analysts have become nervous by the growing uncertainty over the group’s apparent lack of financial visibility.
Then last week Frasers Group plc, Boohoo Group PLC’s largest shareholder, called for the suspension of boohoo founder and executive vice chair Mahmud Kamani.
Mike Ashley’s retail group also called for an independent investigation following a report in the Telegraph alleging misconduct in relation to loans made to suppliers to boohoo.
The Telegraph article claimed that Kamani has been involved in making loans to suppliers of boohoo through other companies, including Pinstripe Clothing – now trading as Pinstripe Property – a private company co-owned by Kamani himself.
The article further suggested that these loans appear to have been repaid by the suppliers to Kamani through a scheme whereby funds are taken from boohoo and instead deposited into his personal accounts, or the accounts of other companies he owns.
Earlier this year a bid by the company to rebrand the corporate name of the listed holding firm to Debenhams Group PLC was narrowly defeated by shareholders, led by Frasers.
It was the latest move in a long-running feud between Mahmud Kamani and Frasers boss Ashley, which came to a head in January when the latter failed to have Kamani removed as a director of boohoo.
‘Double or nothing’: Manchester founder opens up on closing firm