The original company of Boohoo has rejected the Debanehms Group as it welcomes the turnaround of the department store brand purchased out of administration three years ago.
Bohu said that it has successfully completed an overhaul of Debenhems since capturing the brand in 2022 and is now “the majority contributor to the group profitability”.
It said that it would roll out the operating model in Debenhms in a broad firm, using the overhaul in the brand as “as a blueprint for the broader change of the group”. “Concerned with this major strategic change, the group will move as Debeham’s group with immediate effect,” Bohuo said.
The London stock exchange-listed company’s share announcement and comprehensive trading updates were up to one percent in the morning trading, although it remains 18 percent below since the beginning of the year.
With fellow British fashion brand ASOS, the Boohoo Group has suffered heavy erosion since the time after the price of the share, which saw both of them bounce. Boohoo is 89 percent below in a period of five years, ASOS is 87 percent below in the same period.
Both have fought with the costs of quick fashion infections, as well as care of cheap contestants such as Shin – the company is still demanding a London list this year – and Bohu also needed to remove the supply chain issues and labor exploitation allegations.
Recently, the Bohu Board had to fight a challenge with Mike Ashley, the head shareholder Mike Ashley, the owner of the Frasers Group, who tried to force himself on the board and change the direction.
The Group Chief Executive Officer Dan Finale – who was promoted to the top job in November 2024, first led the Debanehms brand – said: “Debanehms have returned. The iconic British heritage brand, which was purchased out of administration, has successfully turned around.
“Reconstruction for the future and turned into Britain’s major online department store.”
He said: “We move as Debenhams Group. This is a decisive moment in our journey, our new strategy, new leadership and new beginnings are reflective. ,
But he admitted that he had “inherited significant challenges inherited” since the rudder was struggling between the sales of sliding with Bohu and high-profile spat with Ashley.
Initially, analysts thought that under Mr. Finale would focus on the breakup of the turnaround group, a brand with Debenhems that could be sold. Instead this strategy becomes a focus for reset, although no longer with high road appearance.
The Boohoo brand will continue, as other fashion brands owned by the group, such as Karen Milan and Pritilling.
The shareholders will need to formally approve the name change of a comprehensive listed company, with a meeting scheduled to vote on changes on March 28.
“Our young brands are changing and it will take time,” said Mr. Finale. “I can see their future ability because they develop in fashion -led marketplaces and adopt a lean operating model.”
In an entire year -old trading update on Tuesday, the group stated that the sales in the firm fell to £ 1.2 billion in February to February, despite a strong performance in Debenhms below £ 1.5 billion last year.
Revenue in Debenims rose from £ 186 million to £ 204.6 million last year.
Meanwhile, Finance Director Phil Ellis has been appointed as the Chief Financial Officer to replace Stephen Morana, immediately effective.
Additional reporting by PA
