Boohoo Group has repaid £50m of its £97m term loan under a refinancing effort to become a “leaner and lighter” business.
In a statement to the stock market this morning, group CEO Dan Finley said: “Following the conclusion of the recently announced oversubscribed placing we are today pleased to announce the repayment of £50m of our term loan.
“The repayment will be made with funds raised from the placing and through the group’s initiative to reduce stock levels as we become a leaner and lighter business, focused on maximising value for all our shareholders.”
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At the end of last week, The Times reported that founder Carol Kane bought 294,350 shares of the fashion giant’s shares. The shares were bought at an average cost of 34p a share, totalling £100,079.
The announcement comes days after the outlet revealed that the family of Boohoo Group’s co-founder, Mahmud Kamani, had injected £15.3m into the business to fuel its turnaround.
This includes £5.1m from Kamani, £1m from his sister and Boohoo Group minority shareholder Rabia Kamani, £6.2m from his son and BoohooMan chief executive Samir Kamani, as well as £3m from his other son and PrettyLittleThing co-founder Umar Kamani.
Rabia Kamani said: “I invested because of Dan’s track record and his clear plans for Boohoo. He was a winner at JD Sports and has been brilliant for Debenhams. The plans he has set out since becoming group chief executive and the speed with which he has acted on them has been very impressive.”
Boohoo kicked off a business review in October as Finley’s predecessor John Lyttle stepped down and a new £222 million debt refinancing deal was unveiled.as it reported a loss before tax of £147.3m in the six months to 31 August 2024.
The £97m loan, said to be due in August next year, was agreed as part of this.
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