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boohoo Group PLC on Tuesday confirmed it is preparing to raise £35 million in fresh equity and is in talks with its lenders to create additional liquidity. The online fast fashion retailer that trades as Debenhams said the equity will be used to pay down its debt and provides the increased financial flexibility to purse its turnaround plan. It is speaking to its lending syndicate about improved covenant amendments due to its expected reduced leverage. boohoo said Chief Executive Officer Dan Finley and directors Mahmud Kamani and Iain McDonald all will participate in the equity raise at 20 pence per share. Total support for the equity raise from directors and institutional shareholders is in excess of £24 million, boohoo said. boohoo shares were down 6.7% to 21.00p early Tuesday in London. It has a £314.4 million market capitalisation. The company also confirmed its guidance for £50 million in adjusted earnings before interest, tax, depreciation and amortisation for the financial year that ends on February 28. This would be up 20% from £41.6 million in financial 2025. boohoo also said it is confident of double-digit-percentage adjusted Ebitda growth in financial 2027. boohoo said its turnaround plan is ‘going apace’, reducing its annual fixed cost exit rate to £135 million from £175 million. It said it is on track to reduce this further to £100 million. It said all brands are now trading profitably. In addition to boohoo and Debenhams, these include Karen Millen and Pretty Little Thing. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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