BOOHOO has unveiled plans to raise £35m and renegotiate loans as it looks to ease pressure on its balance sheet.
On Tuesday, the online retailer said it was holding talks with shareholders over a fresh cash raise, while also speaking to lenders about loosening debt terms.
The company, which rebranded as Debenhams last year, said the steps would provide it with “greater financial flexibility to deliver its turnaround and associated growth plan”.
The Telegraph reported the move is expected to help bring its debt interest costs down by around £20m a year.
The plans come as bosses try to turn around the fashion retailer after it struggled with competition from Shein. Boohoo plunged to a £348m loss last year, with sales falling by almost a fifth to £790m. Dan Finley, the chief executive, said it was an “unacceptable” performance.
Boohoo has also been trying to cut its debt pile. It had been planning to sell PrettyLittleThing, but pulled the sale late last month, saying the brand’s performance had improved.
At the end of its last financial year, Boohoo said net assets fell to £3.9m from £280m a year earlier, while net debt stood at £111m at the end of August 2025. Last year, it agreed to a £175m debt package.
Peel Hunt analysts told The Telegraph the update showed Boohoo was “clearly bumping up against its debt covenants”. Boohoo said it had received “indicative support” to raise £24m and expected performance to “materially improve”.
