Boohoo lenders reject £75m debt extension bid
In its interim update in October, Boohoo’s half-year losses widened to £21.2m compared with £11.8m a year earlier
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Boohoo’s attempt to extend its repayment deadline on a £325m debt has been rejected by some of its lenders due to declining sales, according to the Telegraph.
The online retailer told the Telegraph that it has managed to push the deadline on the £250m of the borrowing, which was supported by six “household name” banks, by a year, to March 2026.
However, lenders for a £75m share of the revolving credit facility, a corporate overdraft with a three-year term that was agreed upon in March 2022 and is completely withdrawn, refused to extend Boohoo’s repayment period by one more year.
The banks, which includes a “leading” Italian institution, have asked Boohoo to make the payment by March next year.
The news comes as Boohoo attempts to battle the negative impact of the cost of living crisis and inflation as well as difficulties in its supply chain. In its interim update in October, Boohoo’s half-year losses widened to £21.2m compared with £11.8m a year earlier.
A spokesman told the Telegraph: “Boohoo remains a strong, well-capitalised business with ample surplus liquidity. The agreed reduction in the [revolving credit facility], which will take effect in March 2025, reflects Boohoo’s lower requirement for revolving credit and re-affirms business as usual operations. Boohoo continues to expect to publish final results in May.”
Retail sector contacted Boohoo for comment.
