Boohoo rebrands to Debenhams Group

Boohoo has announced that it is rebranding as Debenhams Group, having rescued the high street department store out of administration in 2021 and initially relaunched it as an online-only business. 

News of the rebrand comes as Boohoo incurred a one-off non-cash cost of roughly £40m on surplus stock in its brands aimed at younger shoppers. 

Boohoo revealed that Debenham’s turnaround provided it with the blueprint for a revival of the wider group thanks to its technology and lean operating model. Debenhams includes the labels Wallis, Burton, Misspap, Coast, Oasis, Dorothy Perkins and Warehouse, which Boohoo maintains have been turned around.

Boohoo’s youth brands, which include Boohoo, PrettyLittleThing, and MAN, have struggled and required heavy discounting. Additionally, the company will incur one-time costs this year due to the closure of its US warehouse and redundancy payments following 200 job cuts at its Manchester head office.

As a result, the group reported a 16% fall in revenues of £1.2bn and expects to report adjusted underlying profit of roughly £40m. 

Following Boohoo’s strategic review announcement in October and the unexpected exit of CEO John Lyttle, analysts anticipated a potential breakup of the retailer. They predicted Boohoo would likely sell Karen Millen and Debenhams to concentrate on a younger demographic. 

Boohoo had acquired Karen Millen in 2019 for £18.2m after its collapse and Debenhams in 2021 for £55m, transforming both into online-only brands.

Dan Finley, CEO of Debenhams Group, said: “Debenhams is back. The iconic British heritage brand, bought out of administration, has been successfully turned around. Rebuilt for the future and transformed into Britain’s leading online department store. 

“Debenhams Group is sharply focused on maximising value for all shareholders. It will be at the forefront of global digital retail. It will be a leaner, faster and more technologically advanced business. I am confident our best days are ahead of us and I am excited for our future.”

In addition, Phil Ellis has been appointed to the role of chief financial officer, replacing Stephen Morana with immediate effect. 

Finley added: “Finally, I am delighted to promote Phil to CFO of Debenhams Group. We’ve worked closely together for six years. Phil has played a key role in the turnaround and growth of Debenhams. Phil’s retail, marketplace, financial services and turnaround experience are what we need.”