Boohoo Group is starting a strategic review to try to boost trading, and the company’s boss is stepping down. It coincides with the announcement of a new refinance agreement and another sales decline by the owner of Boohoo, Debenhams, and PrettyLittleThing.
John Lyttle, the CEO of Boohoo, announced on Friday that he has notified the board of the company that he will be leaving his position after five years. In order to guarantee a seamless transfer, the retail company stated that he will keep collaborating with the executive group of the company in the upcoming months.
The previous chief operating officer of Primark guided the company through a difficult time, as supply chain issues and growing living expenses put strain on consumer budgets, which lately resulted in declining sales.
The business has experienced tremendous growth during Lyttle’s leadership as a result of the acquisition of other brands, such as Debenhams and Karen Millen.
Boohoo also announced in the shareholder report that it is starting a strategic evaluation of possible options to increase shareholder value, which heightened rumours of a possible business split.
It coincided with the company’s announcement that, for the six months ending August 31, revenues fell by 15 per cent to US $ 808.97 million.
It stated that for the half-year, sales by gross merchandise value (GMV) decreased 7 per cent to US $ 1.54 billion. After accounting for consumer refunds, the period’s GMV was US $ 1046.45 million. Sales in the UK fell just 2 per cent during that time, driven by a 21 per cent loss in sales from its rest of the world business and an 18 per cent decline in sales in the US. Additionally, Boohoo disclosed that it has inked a new debt financing deal for US $ 289.26 million, which it claims would give it the money it needs to move forward with its development.
