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Boohoo has partially repaid its £97m term loan following the conclusion of a recent refinancing drive, as the group continues a turnaround plan after losses tripled in its half-year results. Its board confirmed it has notified lenders of the repayment of £50m of the £97m term loan, with the repayment set to be made with funds raised from a recent oversubscribed placing which raised £39.3m.
Commenting on the move, Boohoo CEO Dan Finley, said: “Following the conclusion of the recently announced oversubscribed placing we are today pleased to announce the repayment of £50m of our term loan.
“The repayment will be made with funds raised from the placing and through the group’s initiative to reduce stock levels as we become a leaner and lighter business, focused on maximising value for all our shareholders. The board would like to thank our banking syndicate for their continued support.”
Last month, Boohoo raised £39.3m through a “significantly oversubscribed” fundraising launch with shareholders after its losses tripled and revenues fell in its half-year results.
According to The Times, the billionaire family of Boohoo co-founder Mahmud Kamai invested £15.35m as part of this fundraising.
Mahmud Kamani, the company’s second-largest shareholder, invested £5.12m in last month’s fundraising drive in a show of confidence in the group’s turnaround plan.
His sister Rabia Kamani, a minority shareholder, invested £1m as part of the fundraising while his son Samir Kamani, CEO of BoohooMan, invested £6.21m. His other son Umar Kamani, co-founder of PrettyLittleThing, invested £3m.
Meanwhile, co-founder Carol Kane purchased 294,350 ordinary shares at a price of 33.8 pence per ordinary share last week, totalling £100,079.
The recent fundraising comes as the group’s pre-tax losses widened to £27.4m in the half-year ended 31 August 2024, up from a loss of £9.1m the prior year. Revenues also fell by 15% from £729.1m to £619.8m.
Newly appointed CEO Dan Finley said that the company is “significantly undervalued” amid the launch of a new strategic review of the group.
