Boohoo is considering a major restructure, potentially offloading brands like Debenhams and Karen Millen as it battles financial woes. The online fashion retailer, which also owns PrettyLittleThing, said its business remains ‘undervalued’ and is reviewing strategic options.
Despite a pandemic-era online shopping boom, Boohoo has since faced stiff competition from fast-growing rivals like Shein and Temu. Analysts suggest Boohoo may focus on younger audiences by selling off Debenhams and Karen Millen, with investment director Russ Mould stating, ‘The break-up of Boohoo has begun.
Retail expert Catherine Shuttle worth highlighted the shift towards sustainability as another challenge for fast-fashion companies. Boohoo acquired Karen Millen for £18.2m in 2019 and Debenhams for £55m in 2021, but these brands have struggled to make a significant impact online.
The company also admitted to declining sales of youth-focused brands like boohoo.com and PrettyLittleThing. Additionally, Boohoo CEO John Lyttle is set to leave after six years at the helm.
Boohoo has faced scrutiny over ethical practices, exposing unfair supplier pressure. The company recently reported a 15 per cent drop in sales, with declining performance across all regions.
