Online fast fashion retailer Boohoo Group is set to rebrand as Debenhams, having bought out the historic department store in 2021 for an estimated £55 million.
The move comes as the Manchester-based firm has struggled to keep its youth-focused portfolio profitable, with brands including Boohoo, PrettyLittleThing and menswear collection MAN treading water in the face of stiff Chinese competition from Shein and Temu.
According to a trading update which accompanied the announcement, Boohoo Group posted a 16% drop in year-on-year revenue down to £1.2 billion. The business is expecting to report adjusted underlying profits of about £40m.
“The successful turnaround of Debenhams is our blueprint for the wider turnaround of the Group. The turnaround of our Youth Brands is underway and will take time,” said Dan Finley, Boohoo Group CEO.
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“I have inherited significant challenges. I can see their future potential as they evolve into fashion-led marketplaces and adopt a leaner operating model.”
Last year, the group closed its US warehouse and cut 200 jobs at its Manchester head office.
Finley continued: “Debenhams Group is sharply focused on maximising value for all shareholders. It will be at the forefront of global digital retail. It will be a leaner, faster and more technologically advanced business. I am confident our best days are ahead of us and I am excited for our future.”
“We go forward as Debenhams Group. This is a defining moment in our journey, reflective of our new strategy, new leadership and new beginnings.”
