Debenhams Group Considers Pretty Little Thing Sale Amid Turnaround Efforts

Debenhams Group is actively exploring the sale of its underperforming youth brand Pretty Little Thing as part of a comprehensive turnaround initiative under chief executive Dan Finley. Since assuming leadership in November after John Lyttle’s resignation, Finley has committed to leaving “no stone unturned” in his effort to reposition the struggling fashion retailer, previously known as Boohoo.

The group recently announced it had secured approximately £50 million in annualised cost savings, which included a significant 30 per cent reduction in headcount. In addition to the potential sale of Pretty Little Thing, Debenhams Group is also evaluating future options for its distribution sites in the United States and Burnley, Lancashire.

The business continues to face mounting pressures after a protracted period of turbulence, exacerbated by conflicts with major shareholder Mike Ashley’s Frasers Group, which publicly critiqued the company’s financial health. Despite these challenges, Dan Finley told shareholders decisive actions are being taken to confront the difficulties head-on, reflecting the tone of the group’s most recent annual results.

For the 12 months ending 28 February, Debenhams reported a 3 per cent increase in adjusted EBITDA to £41.6 million, though revenues declined by 12 per cent to £790.3 million. This led to an operating loss of £42.6 million. The company’s share price remained flat at 14.5 pence at close of day. Notably, all of its brands, including Karen Millen, Nasty Gal, and Dorothy Perkins, are now said to be trading profitably on an adjusted EBITDA basis. The group expects an uplift in adjusted earnings for continuing operations in the first half of 2026.

Finley’s tenure began contentiously, with his appointment seen as a blow to Mike Ashley, who had expressed interest in the chief executive role. Shortly after stepping into the post, Finley faced and repelled a boardroom coup attempt from Ashley’s camp. Efforts to restore stability included rebranding Boohoo as Debenhams Group in March, an event marked by the chief executive declaring, “Debenhams is back.”

Founded in 2006 by Mahmud Kamani and Carol Kane, Boohoo acquired the then 247-year-old Debenhams out of administration in 2021 for £55 million, transitioning the heritage retailer to an online-only model. To reinforce financial stability, Debenhams secured a new debt financing package valued at up to £175 million in August, supplanting an earlier £125 million agreement and managing to reduce net debt by over £15 million to £78.2 million over the year.