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boohoo Group PLC on Wednesday said it is launching a fundraise of around £35 million, after concluding talks with its lending syndicate and ‘in light of substantial indicative demand from investors’. The fundraise includes a placing and direction subscription. The online fast fashion retailer, that trades under the Debenhams name, said 194.4 million shares will be issued at 18 pence each. The price is a 5.3% discount to its 19p closing price on Tuesday. Shares in the company fell 2.1% to 18.50p each in London on Wednesday. It had closed down 16% on Tuesday after it confirmed it was preparing an equity raise. ‘Net proceeds of the fundraise are intended to create additional liquidity which, in turn, will deliver improved covenant amendments. This will provide greater financial flexibility as the group works to deliver its turnaround and associated growth plan,’ boohoo said on Wednesday. boohoo said Chief Executive Officer Dan Finley and directors Mahmud Kamani and Iain McDonald will all participate in the placing. boohoo on Tuesday 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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