Lenders to the Boohoo Group have reportedly drafted in advisers to discuss refinancing options for the business amid ongoing losses.
Sources said Boohoo creditors have called on FTI Consulting to “tackle talks” about refinancing as the fashion retailer faces a £325m debt wall and further losses, according to Bloomberg.
Boohoo is understood to be working with bankers at Rothschild & Co on the matter. It has a £325m unsecured revolving credit facility, of which £75m is due next year.
The additional £250m is due in 2026, according to the fashion giant’s latest annual report.
Boohoo, FTI and Rothschild declined to comment.
The news makes Boohoo the latest fashion retailer, alongside the likes of Asos and Superdry, to approach banks to help renegotiate debt.
In Boohoo’s most recent trading update for the full year to February 29, 2024, the fast-fashion retailer saw revenue fall by 17% year on year as a result of “difficult market conditions”.
Boohoo also posted a loss before tax of £159.9m, up from £90.7m in the previous year,
The group also recently faced significant backlash from shareholders after its senior executive team was on track to be rewarded £1m in bonuses despite the business raking up losses.
Following the shareholder backlash, Boohoo backtracked on its plans and said executive directors at the business had taken the decision to waive bonus entitlements for the financial year following discussions.
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