Boohoo or bust? Can fast fashion giant turn around its fortunes – experts have their say

Amid declining performance figures and increasing shareholder tensions, can fast fashion giant Boohoo reverse its fortunes?

Frasers Group, led by Mike Ashley, has steadily increased its stake in Boohoo since 2023 and now retains a 28.1% stake, becoming the largest shareholder in the brand.

The leadership battle for control at the top between Boohoo co-founder Mahmud Kamani and Mike Ashley from Frasers Group may have dominated the headlines but it’s just a glimpse of what’s happening behind the scenes.

READ MORE: Mike Ashley vs Boohoo: what bitter boardroom showdown could mean for struggling fast fashion giant

Boohoo plans to raise up to £39.3m via a share issue to help fund its turnaround plan, after reporting a pre-tax loss of £147.3m in the six months to 31 August 2024. So what’s happening in the world of retail and can Boohoo get its mojo back?

Boohoo’s challenges: financial problems and pressure from competitors

Launched in 2006 in the heart of Manchester, founders Mahmud Kamani and Carol Kane were onto a winner with their fast fashion brand. Boohoo went public in 2014, and has acquired major well-known brands such as PrettyLittleThing, Karen Millen, and Debenhams over the years.

The fashion giant was once a “game-changer” when it first launched. That’s according to retail expert and ‘Customer Whisperer’ Kate Hardcastle MBE, who tells Prolific North how the brand was able to successfully tap into a “desire for fast, affordable fashion that was accessible to all”.

But times and attitudes have changed and there are new, more successful players in town.

“Retail, like its customers, has evolved. Entrants like Shein and Temu have disrupted the market and trained some consumers to buy very differently. Other possible Boohoo customers are now more mindful, more discerning, and more demanding. They want brands that reflect their values and connect with them on a deeper level—not just through price points, but through purpose. So whether its shrewd competition or the lack of authentic values – Boohoo is getting squeezed.”

The past decade has seen “seismic shifts” in consumer behaviour, and this is having an impact.

“The rise of re-commerce platforms like Vinted and Depop is a clear signal that shoppers are embracing sustainability and the circular economy. Fast fashion brands can’t ignore this. Boohoo needs to stop doubling down on outdated practices and start asking itself: how do we evolve to stay relevant in this new retail landscape?

“Equally, the way we shop has changed. Social commerce has exploded, with platforms like TikTok Shop redefining how trends are discovered and products are purchased. While Boohoo has been active in influencer marketing, this space is undergoing significant disruption.”

Retail expert Catherine Shuttleworth, CEO at Leeds agency Savvy, agrees. Consumers are now making more sustainable choices and choosing slow over fast fashion.

It isn’t great news for Boohoo.

She explains: “The core Boohoo shopper has grown up fast and now has new financial pressures that limits spending on clothes for themselves. Meanwhile Boohoo newer and younger shoppers are reevaluating the whole concept of fast fashion in many ways and looking at better options – either cheaper with Shein or greener with Vinted, Depop and charity shops.

“From a business perspective Boohoo have also not seen great success with Debenhams and Karen Millen overall the business has lost its grip on consumers and its magic touch on providing shoppers what they want when they want it.”

The impact of the Mike Ashley v Mahmud Kamani battle


It leads us to the spat between Boohoo and Frasers Group, now being played out through a series of meetings and letters to shareholders with the next ‘showdown’ set for 21 January.

In a nutshell, in 2024 Frasers Group penned the first of a series of open letters calling for Kamani’s exit. The plan? For Mike Ashley to step in as CEO due to Boohoo’s “abysmal trading performance and share price collapse.” Unsurprisingly, it has led to a lot of back and forth between the two leaders, the board and the shareholders.

READ MORE: Mike Ashley vs Boohoo: what bitter boardroom showdown could mean for struggling fast fashion giant

“Ultimately this looks like a battle between two retail titans,” says Shuttleworth.  

“Their disputed view of how the business should be run shows no sign of ending with fundamental differences in the future of the business. But for now, it appears that Kamani has support from the board. What seems to be missing is a clear strategy for the business turnaround. Debenhams.com has failed to make any impact with shoppers despite its huge brand recognition.

“The board appears to think that Kamani’s commitments to the business demonstrated by the fact that he is waiving his salary for the next 12 months is evidence enough that he can lead the business transformation. It’s hard to see how Mike Ashley and Frasers are going to ever agree with that sentiment.”

For Hardcastle, this boardroom showdown isn’t doing the brand any favours in an increasingly saturated market.

“When it comes to the leadership debate, my view is simple: the future of Boohoo lies in forward-thinking leadership that champions the consumer and embraces change. This isn’t about taking the brand back to a bygone era of retail, where success was measured purely by volume and discounts. It’s about evolving the business model to meet the needs of today’s shoppers.

“It needs a leader who will prioritise listening to the consumer. Someone who will focus on creating better-quality products, reducing waste, and addressing the ‘digital distress’ caused by overwhelming product ranges.

“Boohoo doesn’t need more choice, it needs smarter, curated offerings that resonate with its audience. It’s not just about having a voice at the table for consumers – it’s about giving them the loudest voice in the room – so the best outcome for Boohoo is a leader who will put ‘the aces in the places around the table’.”

The future

For Boohoo to reverse its fortunes, the future lies in the brand embracing authenticity and sustainability to keep up with consumer demands.

“Consumers are savvier than ever – they see through superficial campaigns,” explains Hardcastle. “The future lies in authenticity: working with micro-influencers and creating genuine connections, not simply chasing the next big viral moment.”

“Fundamentally the business needs rethinking to be fit for the second half of this decade,” adds Shuttleworth. “It remains to be seen what the vision is for the business.”

For Boohoo to really turnaround and continue as a leading Northern fashion brand in future, the real question isn’t just about Kamani or Ashley anymore ahead of the second general meeting next week on 21 January.

“It’s about which leader will truly listen to and champion the modern consumer. This isn’t the time for boardroom battles to overshadow what matters most—the people who buy,” says Hardcastle.

Subscribe to the Prolific North Daily Newsletter Today!

Want all the latest content from Prolific North delivered direct to your inbox daily? Of course you do!

Related News

Sign up to the Prolific North Daily Newsletter

Keep up with the latest developments in the creative, digital, tech, media, and marketing industries in the North