Boohoo Group has made a repayment of £50 million on its £97 million term loan as part of its strategy to create a “leaner and lighter” organization.
In a statement released to the stock market earlier today, CEO Dan Finley remarked: “Following the conclusion of the recently announced oversubscribed placing, we are pleased to report the repayment of £50 million of our term loan.”
“This repayment will be funded by resources obtained from the placing, alongside the group’s efforts to decrease stock levels while shifting towards a leaner business model aimed at maximizing value for all our shareholders.”
Last week, The Times reported that founder Carol Kane acquired 294,350 shares of the fashion group at an average price of 34p per share, amounting to £100,079.
This news follows the announcement that the family of co-founder Mahmud Kamani contributed £15.3 million to support the company’s turnaround efforts.
This investment includes £5.1 million from Kamani, £1 million from his sister Rabia Kamani, a minority shareholder in Boohoo Group, £6.2 million from his son Samir Kamani, the chief executive of BoohooMan, and £3 million from his other son Umar Kamani, co-founder of PrettyLittleThing.
Rabia Kamani commented: “I invested because of Dan’s track record and his clear plans for Boohoo. He succeeded at JD Sports and has performed exceptionally at Debenhams. The initiatives he has proposed since taking over as group chief executive and the promptness in their execution have been incredibly impressive.”
Boohoo initiated a business review in October, coinciding with the departure of Finley’s predecessor John Lyttle and the announcement of a new £222 million debt refinancing agreement, following a reported loss before tax of £147.3 million for the six months ending August 31, 2024.
The £97 million loan, which is scheduled to mature in August next year, was arranged as part of this refinancing effort.
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