Boohoo’s new chief executive Dan Finley said he is considering all options as the retailer commenced a review of the business after losses deepened.
Speaking to Retail Week, Finley said all options are on the table as he announced he was undertaking a business review of the struggling fashion retailer.
Finley said: “The business review has just commenced, and I’m leading that as we work with our independent advisors and independent board to determine how we maximise value for all shareholders. All options are on the table, and I’m not going to prejudge the outcome of that.”
When asked if this includes the rumoured breakup of brands within the Boohoo group, Finley said the company believes the group is undervalued and will be taking all steps necessary to maximise shareholder value.
He said: “We believe that the business is fundamentally undervalued. The board has recognised the need for change. We have new leadership in place, and we are undertaking this business review in due course.
“What I’ve seen and learned from our transformation of Debenhams is there’s a real opportunity to replicate that capital, like stock, high growth, and highly profitable marketplace business in some of our other brands. And so I’m excited about that.”
This comes after the fashion retailer’s adjusted losses before tax deepened to £27.4m, while adjusted EBITDA fell by £10.5m to £20.8m in the six months to August 2024. Group revenues slumped by 15% to £619.8m, while gross profits dropped by 19.2% to £314.4m.
Boohoo called on shareholders to vote against all the proposals set out by Frasers in its ongoing dispute with the majority shareholder.
The embattled fashion retailer insisted its existing board can turn the ship around and has a “credible plan to unlock and maximise value for the benefit of all shareholders through its business review, and that Dan Finley is the right chief executive to lead the business”.
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