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Debenhams has confirmed that it intends to seek roughly £35m in equity, following speculation it would raise funds to counter its deteriorating performance.
The online department store said the fundraise will increase its liquidity, with the board adding the raising round will fortify its balance sheet and lower debts.
Debenhams, previously known as Boohoo Group until last March, said its CEO Dan Finley, co-founder and executive chairman Mahmud Kamani and non-executive director Iain McDonald will all participate.
The group’s board said it remains assured its adjusted EBITDA will reach £50m in the current financial year to 28 February 2026 (FY26), and that it expects double-digit adjusted EBITDA growth in the financial year ending 28 February 2027 (FY27).
It added that the fourth quarter has brought material improvements in the group’s GMV trend, noting that the simplification of its business is alleviating it from “significant cost”.
Debenhams said its “turnaround plan is going apace”, with its cost out strategy producing a fixed cost exit rate of £130m, down from £175m for FY26, with the group on track to meet its target of £100m.
All of the group’s brands, including PrettyLittle Thing, boohooMAN and Karen Millen, are currently making a profit when looking at adjusted EBITDA. Following the improved performance of PLT, it said it is exploring various ways to reduce debt and improve cash flow, such as: strategic IP licensing, supply chain partnerships, other capital financing options and non-core asset disposals at best possible value
Last month, the group said FY26 trading had exceeded board expectations so far, with the group citing increased “momentum” within its main brand and improved performance across its youth labels.
The group subsequently decided it would retain fashion brand PrettyLittleThing (PLT), whose sale it had been mulling after reporting pre-tax losses of £264m for the year to 28 February 2025.
