Boohoo considers break-up of business
The company could reportedly spin off off its core labels including Debenhams and Karen Millen
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Boohoo bosses are reportedly mulling a break-up of the company after shareholders have pressured the group to revive the business.
According to The Times, a number of shareholders at the online retailer are understood to have urged the board to break up the group and spin off its core brands to increase their value.
The group’s brands currently include PrettyLittleThing, Karen Millen and Debenhams.
It comes as the group has suffered a steep fall in its share price, which has dropped more than 85% over the last five years, as well as widening losses.
One source told The Times: “The sum of the parts at Boohoo is greater than the current market cap. Therefore, if you want to realise that you’ve got to do one thing, ultimately, which is to break it up.”
The Times added there was no certainty that the business would be split up or how it would be divided, yet sources said that co-founders Carol Kane and Mahmud Kamani were considering all options.
Another source said that Kamani was “listening to investor calls” regarding the move and is “more aligned on this than anybody else”.
Boohoo is understood to be waiting to assess its Christmas trading performance before finalising a plan, according to The Times.
Boohoo has been contacted for comment.
