Boohoo Shares Slide as Retailer Launches £35 Million Cash Call

The London-listed company, which is pivotally integrating its Debenhams brand, saw its stock drop 5.6% to 21.25 pence in early trading. The fundraising effort is designed to reset Boohoo's capital structure, with the goal of slashing its net debt-to-EBITDA ratio to below 2 by the 2027 fiscal year, and eventually under 1 by that year's end.

Strengthening the Balance Sheet

The retailer confirmed it has already secured support for £24 million of the target, with directors Dan Finley, Mahmud Kamani, and Iain McDonald set to participate in the share issue at a price of 20 pence per share. This capital injection is a prerequisite for a new agreement with a lending syndicate intended to provide the "financial flexibility" necessary for Boohoo’s broader turnaround strategy.

Despite the immediate market skepticism, management maintains that its restructuring is yielding results. The company reiterated its guidance for £50 million in adjusted EBITDA for the 2026 fiscal year and expects double-digit growth the following year. Notably, the group reported that its PrettyLittleThing (PLT) brand is no longer classified as an asset for sale, as all core brands have returned to profitability on an adjusted EBITDA basis.