Boohoo’s financial recovery efforts are under pressure after a potential property investor abandoned negotiations to purchase its London office.
An Israeli investor has reportedly abandoned plans to acquire the company’s London office, valued at approximately £60m, following unspecified concerns discovered during a property survey.
This development, first reported by The Telegraph, emerges at a critical juncture for Boohoo, which is desperately seeking funds to address an impending £47m debt repayment scheduled for August next year.
The company’s financial straits are further complicated by an apparent power struggle between co-founder Mahmud Kamani and Frasers Group’s Mike Ashley. Notably, Boohoo invested £72m just three years ago in purchasing a six-storey office building at 10 Great Pulteney Street to support its expanding brand collection, and it is anticipated that it would incur a financial loss if forced to sell the property.
This potential sale follows a series of previous acquisitions, including the purchase of Debenhams and several Arcadia Group brands such as Burton, Dorothy Perkins, Wallis, and fashion labels Karen Millen, Oasis, and Coast.
Ashley has publicly cautioned against what he describes as a potential “fire sale of assets at knockdown prices” as Boohoo attempts to navigate its current financial challenges.
A Boohoo spokesperson said the company remains “in active negotiations with regard to the sale of our London office”, though the precise details of these discussions remain undisclosed.
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