Debenhams plans to raise £35m to drive turnaround and cut debt

The proprietor of Boohoo and Debenhams is readying to raise £35 cardinal to thief accelerate its turnaround plans and trim debts.

Debenhams Group, which was renamed from Boohoo past year, said it has been preparing for an equity fundraiser to springiness nan business other liquidity.

Co-founder Mahmud Kamani, group main executive Dan Finley and non-executive head Iain McDonald are group to return portion successful nan fundraise.

It added that it is besides successful “advanced discussions” pinch its lending syndicate complete further “financial flexibility” to thief it pinch its turnaround efforts.

Debenhams said its turnaround scheme is “going apace” and held patient its targets for nan financial year, aft an upgrade past month.

The company, which besides runs brands including Karen Millen, has said it is connected way to station adjusted underlying profits of £50 cardinal for nan twelvemonth to nan extremity of February.

The unit group added that it is continuing to research opportunities to thief thrust an “asset-lite model”, specified arsenic trading non-core assets, proviso concatenation partnerships, strategical IP licensing and different financing options.

Last month, nan group halted plans to perchance waste disconnected its PrettyLittleThing brand.

It did not disclose which parts of nan business it mightiness see arsenic “non-core”.

Debenhams is besides reducing its spot costs, telling shareholders that lease costs are group to trim from £17 cardinal this financial twelvemonth to astir £13 cardinal adjacent year.

It said this will autumn by a further £6 cardinal erstwhile nan lease connected a vacant US spot expires.

The group besides plans to trim its superior expenditure from £16 cardinal complete nan past twelvemonth to astir £8 million.

“As a consequence of this simplification of nan group’s business, nan planned fundraise, nan continued attraction connected improving and increasing nan asset-lite marketplace model, and nan resulting effect of importantly improving nan group’s rate generation, nan board stay assured successful nan outlook for full-year 2026 and full-year 2027,” nan patient said.