Boohoo Group has received lender consent for its fundraising, which it claims will provide a “strong foundation from which to unlock and maximise shareholder value.”
The fashion giant is planning 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.
Boohoo chief executive Dan Finley 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.”
The group’s chair Tim Morris 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.”
The announcement comes amidst an ongoing Boohoo boardroom battle with Frasers Group, which is Boohoo’s biggest shareholder with a 28.1% stake in the fast fashion giant. The Sports Direct owner demanded that executive chairman Mahmud Kamani be replaced my Mike Ashley.
Frasers has urged the fashion retailer’s shareholders to vote to appoint Ashley and restructuring expert Mike Lennon as directors of the company at its upcoming shareholder meeting on 20 December.
Frasers cited “the dismal results, lack of transparency, terrible refinancing, and further supply chain allegations” as reasons behind its call, and said “the chaos at Boohoo must end.”
