Boohoo fundraising receives lender backing

Boohoo has officially received lender consent in regards to its fundraising, which has been set out to “unlock and maximise shareholder value”, as stated by chairman, Tim Morris.

The fast fashion giant has initiated plans for a Placing & Subscription and Retail Offer through which it is aiming to raise up to 39.3 million pounds.

The proceeds of the process will go towards Boohoo’s turnaround strategy, launched after the group posted a widening loss in the six months to 31 August 2024, amounting to 147.3 million pounds.

In a regulatory filing, chief executive officer of Boohoo, Dan Finley, said: "Concluding the fundraising process and securing support from the banking syndicate is further evidence of the decisive steps that we have taken since announcing the business review.

“I now look forward to driving the business review forward and maximising value for all shareholders and the completion of this process gives us a great platform to do so."

Boohoo has made an application to the London Stock Exchange, on which it trades, for the admission of over 126 million new ordinary shares, expected to become effective from November 26.

Frasers Group, which holds a 27 percent stake in Boohoo and has been putting pressure on the firm to change leadership, subscribed for 39.1 million new shares, part of which is subject to clawback.

This is also the case for director and Boohoo co-founder Mahmud Kamani, who subscribed for 49.9 million new ordinary shares.