boohoo group plc has disposed of its Sheffield distribution centre for £90 million – a move which it says reduces its net debt to a ‘negligible level’.
The firm, which rebranded its trading face to Debenhams Group in 2025 – but failed to win shareholder approval to change the name of its listed entity – is transitioning from pure online retailer to a marketplace-led business model.
Debenhams Group – which owns the boohoo, PrettyLittleThing and Karen Millen brands – says the model is capital-lite, stock-lite, cost-lite and cash generative. Its ambition is for the marketplace to represent well over 50% of GMV.
Consistent with this strategy, it has sold the automation in its Sheffield distribution centre and reassigned the lease to Primark Stores Limited for a cash consideration of £90m.
£76.5m was received on completion and the remaining £13.5m will be received on vacant possession early next year.
Concurrently, the group is entering into an agreement with a global third-party logistics provider to fulfil its stocked product and “allow the group to scale its Delivered by Debenhams fulfilment proposition beyond fashion”.
The company’s losses before tax for the year ended 28th February 2026 were £108.6, down 69.2% from £352.5m in the prior year – reflecting improvement in adjusted EBITDA and a sharp reduction in exceptional costs.
The company says it will return to GMV growth in Q1. It will provide a H1 trading update on 17th September 2026.
“The Debenhams Group turnaround continues at pace, and this transaction helps accelerate our progress,” said CEO Dan Finley.