Boohoo Group has successfully raised US $ 48.7 million through an investor cash call as it faces deepening financial challenges and intensifying disputes with Mike Ashley’s Frasers Group.
In its interim results for the first half, Boohoo reported a 15 per cent decline in revenue to US $ 769.6 million, with adjusted pre-tax losses widening to US $ 33.9 million from US $ 11.3 million a year ago. Operating profits fell by 19.2 per cent to US $ 389.4 million, while net debt surged by 108.1 per cent to US $ 177.6 million.
Despite the losses, newly appointed CEO Dan Finley highlighted positive growth in beauty, the Debenhams Marketplace, and the Karen Millen brand. He expressed optimism about the group’s potential.
The company attributed its struggles to fierce competition from fast-fashion giants Shein and Temu. Finley is tasked with driving a strategic review to strengthen Boohoo’s position.
The fundraising comes amid escalating tensions with Frasers, which holds a 27 per cent stake in Boohoo. Frasers has criticized Boohoo’s management for “value destruction” and is pushing for a board seat to safeguard shareholder interests. Boohoo, however, claims Frasers’ actions serve self-interest and risks undermining its recovery efforts.
Boohoo urged investors to reject Frasers’ boardroom ambitions, reiterating confidence in its strategy under Finley’s leadership to maximize shareholder value.
