Boohoo secures lender consent for its turnaround fundraising

Boohoo Group has today announced that it has received ‘Lender Consent’ from its bank lenders for its £39.3 million fundraising, which was completed on 14 November.

The struggling fashion retailer is raising £39.3 million to fund its turnaround plan. In its most recent financial statement, the company reported a pre-tax loss of £147.3 million in the six months up to 31 August 2024.

Dan Finley, CEO of Boohoo, said: “Concluding the fundraising process and securing support from the banking syndicate is further evidence of the decisive steps that we have taken since announcing the business review. I now look forward to driving the business review forward and maximising value for all shareholders and the completion of this process gives us a great platform to do so.”

Tim Morris, Chair of Boohoo, added: “I’d like to take this opportunity to thank our banking syndicate for their continued support. As a result of their backing, we now have a strong foundation from which to unlock and maximise shareholder value for all shareholders.”

This comes as the retailer continues its showdown with Frasers Boss Mike Ashley. Frasers, which owns a 28% stake in the retailer, has accused it of “long-term mismanagement” causing “value destruction”. Boohoo responded by saying Frasers’ criticisms were “inaccurate and unfair”.

Since Ashley’s plea to become CEO was dismissed, Frasers is campaigning for board influence at Boohoo. It has even set up a website “Boohoo deserves better” as it steps up its bid for a boardroom coup.

On 21 November, Frasers Group published an open letter to Boohoo Group shareholders, urging that Founder and Executive Chairman Mahmud Kamani be replaced by Mike Ashley. The company wrote: “A simple choice: win with Mike Ashley or lose with Mahmud Kamani.”

It urged Boohoo shareholders to vote to appoint Ashley and restructuring expert Mike Lennon as Directors at its shareholder meeting on 20 December.