Boohoo to be Renamed Debenhams Group as New CEO Plans Turnaround

Online fashion retailer Boohoo is to undergo a significant transformation as it rebrands itself as the Debenhams Group. Under the leadership of new chief executive Dan Finley, the company aims to replicate the success of Debenhams, which it acquired in 2021, to revitalise its broader business operations.

Finley, who previously headed the Debenhams business before being promoted to Boohoo’s chief executive, intends to expand the marketplace model across the group. This approach will see Boohoo focus on selling other retailers’ brands alongside its own, minimising risks associated with surplus stock and high return costs. Finley believes this strategy will “maximise shareholder value” and make Boohoo a leaner and more technologically advanced organisation.

Boohoo purchased Debenhams for £55 million after the latter fell into administration, transforming the 247-year-old high-street brand into an online-only retailer. Describing the marketplace model as “highly cash generative,” Finley expressed confidence in rolling out this system across the entire group. However, recent sales figures for Boohoo’s youth-oriented brands, such as Boohoo Man and PrettyLittleThing, have fallen short of forecasts. Declining consumer confidence led the retailer to discount stock and take a £40 million writedown on excess inventory.

The group recorded sales of £1.22 billion for the year ending February 2025, falling below analyst predictions of £1.29 billion. Despite challenges, Finley remains optimistic, stating that the new operating model will set the stage for future growth. Boohoo expects to report underlying annual profits of £40 million, fueled primarily by its cash-generative divisions.

As part of the restructuring, Boohoo has planned cost-saving measures, including the closure of a warehouse in the United States and 200 redundancies at its Manchester-based office. These changes will incur one-off costs this year but are expected to benefit long-term profitability. Additionally, Phil Ellis has been appointed as group finance director, replacing Stephen Morana. Ellis previously worked alongside Finley at Debenhams, and his appointment signals a continuation of the new leadership strategy.

Boohoo’s recent struggles have been compounded by stiff competition from global rivals like Shein and Temu, as well as the resurgence of high-street shopping. Over the past five years, the company’s share price has plummeted by more than 88 per cent, with shares currently trading at 26p. Analysts believe that prioritising more profitable divisions, such as Debenhams, will provide the company with greater stability in the challenging retail environment.

Finley, known for his experience in digital transformation, has emphasised his vision to make the company more efficient and growth-focused. Drawing on his turnaround success with Debenhams, Finley is poised to redefine Boohoo’s operations and strengthen its position in a competitive marketplace.