It has been reported that executives at fast fashion behemoth Boohoo Group PLC are considering splitting the company apart, with a number of shareholders pushing the shop to split off some of the better-performing brands.
Media outlet The Times was informed by sources that there might be benefits to spinning out or selling Debenhams and Karen Millen in an effort to improve the company’s stock price, which has decreased by more than 85 per cent in the last five years.
The exact nature of this separation is unknown, but co-founders Mahmud Kamani and Carol Kane were reportedly considering all of their options, including the sale of companies like PrettyLittleThing and Boohoo.
Boohoo has been experiencing falling sales in recent years, a mood that persisted into the fiscal year 2024, when group GMV decreased 13 per cent to US $ 2.42 million.
Though sales declines at the business’s major brands, Boohoo, BoohooMan, PrettyLittleThing, Karen Millen, and Debenhams, improved from -9 per cent to -4 per cent in the first half of the year, the company remained positive about these brands.
