Online fast fashion giant Boohoo has revealed it is renaming itself as Debenhams Group, after rescuing the brand from administration four years ago.
At the time, Boohoo snapped up the retailer’s brand and website for £55m. Now, “Debenhams is back,” said Dan Finley, group chief executive officer. Debenhams includes the labels Wallis, Burton, Misspap, Coast, Oasis, Dorothy Perkins and Warehouse, which have been “successfully turned around”.
“The most exciting thing is that we are just getting started. We see a clear path to scaling this into a £multibillion GMV business with strong profitability,” added Finley.
The company said Debenhams provides the “blueprint for the wider turnaround” of the group, thanks to its marketplace-led business model, proprietary technology and ‘lean’ operating model.
READ MORE: Boohoo or bust? Can fast fashion giant turn around its fortunes – experts have their say
“Our ongoing business review has confirmed that Debenhams, its business model and its technology is at the epicentre of our Group going forward. It is the driving force of the business and will lead the Group recovery. It is at the heart of the investment case,” the company added.
However, trading has been “tough” for the company’s youth brands which includes Boohoo, PrettyLittleThing and its menswear collection MAN. It has led to the retailer needing to take a £40m writedown on surplus stock, and the company also outlined one-off costs this year thanks to the closure of its US distribution centre alongside redundancy costs.
READ MORE: ‘Luxe’ look, polyester reality? PrettyLittleThing makeover under fire from brand experts
It’s not been plain sailing over at PrettyLittleThing either, as brand experts were recently critical about at its recent makeover.
The turnaround of the group’s youth brands “will take time” said Finley. “I have inherited significant challenges. I can see their future potential as they evolve into fashion-led marketplaces and adopt a leaner operating model.”
The group reported its latest results, revealing a 16% dip in revenue to £1.2bn but expects to report adjusted underlying profits of about £40m for FY25.
The group also confirmed that Phil Ellis, finance director of Debenhams and managing director of DebenhamsPay+, will become Group CFO and a member of the board, replacing Stephen Morana with immediate effect.
“We’ve worked closely together for 6 years. Phil has played a key role in the turnaround and growth of Debenhams. Phil’s retail, marketplace, financial services and turnaround experience are what we need. I’d like to thank Stephen for his significant contribution in a challenging period. The board and I wish him well for the future.”
