Boohoo mulling over selling PrettyLittleThing following a 264 million pound loss in 2024

Debenhams Group Seeks Change and Potential Sale of PrettyLittleThing

The Debenhams Group, one of the UK's largest e-commerce groups, has announced a significant shift in its strategy. The company, which was formerly known as Boohoo, is currently evaluating the sale of its popular brand, PrettyLittleThing.

In a statement, the Group's CEO, Dan Finley, acknowledged a "prolonged period of unacceptable low performance" and expressed the company's desire to reposition and adjust brands targeted at young audiences. Finley emphasized the focus on profitability and cash generation under the new leadership.

The move comes after the Debenhams Group achieved estimated annual savings of £50 million following a 30% reduction in its workforce. The Group's revenue for the fiscal year 2024, excluding PrettyLittleThing's results, decreased by 12% to £790.3 million. losses before tax for the same period increased to £263.9 million, compared to £146.4 million in the previous year.

Despite these challenges, the Debenhams Group managed to achieve an adjusted EBITDA of £41.6 million in 2024, representing a 5.3% margin.

In addition to the potential sale of PrettyLittleThing, the Debenhams Group is also reviewing the strategy of its logistics centers in Burnley and the US. The Group is planning an overhaul of its distribution center in Burnley, UK.

At this time, no specific persons or companies have been publicly named or considered as potential buyers for PrettyLittleThing. The Debenhams Group is actively seeking a sale to accelerate progress and maximize shareholder value but has not disclosed interested parties.

The Debenhams Group's 2024 turnover saw a 17% drop, falling to £1.217,9 million. The CEO, Dan Finley, stated that the company is undergoing a global review, and the Group's future plans are expected to be announced in due course.