Boohoo, a fast fashion retailer in London’s Soho, is looking to sell its London office as it tries to improve its balance sheet.
According to sources in the market, the troubled retailer is looking for offers around £60m (£60m) for its headquarters in the capital just three years after spending £72m (£60m) on the building.
The deal is expected to include a leaseback and sale agreement, whereby Boohoo would occupy 10 Great Pulteney Street in London for up five years.
Boohoo purchased the six-storey building in 2021, as part of its rapid growth. The office space was 43,963 square feet, and will be used to house their growing portfolio of brands.
The deal was for the ailing department store chain Debenhams, and the former Arcadia brands Burton Dorothy Perkins Wallis.
Karen Millen and Oasis were among the labels that it acquired in previous years.
Boohoo is facing questions about whether it can meet its looming debt payments.
The bank has a £325m unsecured credit line that it must repay over the next 18 month.
After lenders refused to extend the deadline, a portion of this sum worth £75m is due in 2019. The remaining £250m must be paid by 2026.
The losses have risen to £160m over the past 12 months, up from £91m last year.
The business went from a cash position of £6m to a net debt of £95m .
Boohoo’s sales slump has caused its share price to fall to less than 29p. This is less than a tenth of the peak it reached in 2020.
Boohoo’s value has plummeted by over £350m. This is in comparison to the more than £5bn that was spent on Covid.
John Lyttle, the chief executive of Boohoo, blamed its problems on “difficult markets conditions” and said that “high levels inflation and weak consumer demand” had affected the company.
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