Boohoo co-founder Mahmud Kamani has invested £8m as part of Debenhams Group’s latest £40m fundraise.
Earlier this week, Debenhams Group outlined its plans for the £35m fundraise in a statement to the London Stock Exchange – triggering a 14 per cent drop in Boohoo Group’s share price.
In a positive update this morning, the company said following ‘investor demand significantly in excess of £35m’ it had upscaled the fundraise c.£40m.
As part of the fundraise, it has been revealed Kamani invested £8m together with his close relatives and related trusts to acquire 44m shares.
Outgoing non-executive director Iain McDonald invested £3m in return for 16.6m shares while group CEO Dan Finley invested £150,000 for 833,333 shares.
Frasers Group acquired nearly 60m shares and remains the company’s biggest shareholder.
Online retail giant Boohoo Group rebranded as Debenhams Group in 2025 and its brands include Debenhams, Karen Millen, boohoo, MAN and PLT.
Director exit
Following the successful completion of the fundraise, Iain McDonald informed the company he would be stepping down as non-executive director and chair of the renumeration committee with immediate effect.
McDonald, said: “It has been a pleasure to be a non-executive director at Debenhams over the last nine years and I am delighted to support the company in the fundraising.
“This should be viewed as a measure of how much I believe the current market valuation of the business undervalues its future prospects.
“Dan has transformed the cost base and business model since being installed as CEO and with the re-basing of the business to a profitable core now largely complete, the prospects for strong growth and cash generation are the best for many years.
“I have confidence in the board and wider management team on delivering its turnaround. I look forward to watching the continued momentum of the business as a supportive investor.”
CEO Dan Finley said: “We are pleased with the strong level of support from new and existing shareholders.
“The success of the fundraise demonstrates the strength of support for our multi-year turnaround strategy.
“The fundraise will deliver an improved capital structure for the group, providing us with greater financial flexibility to execute our turnaround strategy and deliver value for all shareholders.
“On behalf of the board, I would like to thank Iain for his valuable contribution to the group. Iain’s extensive experience across the technology, digital and marketing sectors has been a great benefit and counsel for the board. We are pleased that Iain remains an investor in the group and we look forward to Iain’s continued support.”