Boohoo fundraising agreed by lenders

Following Boohoo’s "result of oversubscribed placing and subscription" and "retail offer result and clawback placing information", the business has received lender consent. Fundraising remains conditional on the placing “agreement not having been terminated and becoming unconditional, and admission”.

An application has been made to the London Stock Exchange for 126,908,442 new ordinary shares to trade on Aim (Alternative Investment Market). In a statement, Boohoo Group said it is expected trading in the new shares to commence at 8am tomorrow (26 November).

On 14 November, Drapers reported that Boohoo Group had issued a fundraising round of up to £39.3m as it reported a loss before tax of £147.3m in the six months to 31 August 2024.

In a statement accompanying the lender consent announcement, Boohoo Group CEO Dan Finley said: "Concluding the fundraising process and securing support from the banking syndicate is further evidence of the decisive steps that we have taken since announcing the business review. I now look forward to driving the business review forward and maximising value for all shareholders, and the completion of this process gives us a great platform to do so."

Tim Morris, chair of Boohoo, said:  "I'd like to take this opportunity to thank our banking syndicate for their continued support. As a result of their backing, we now have a strong foundation from which to unlock and maximise shareholder value for all shareholders."

The latest announcement comes as Boohoo promoted non-executive director Tim Morris to the role of independent chair last week (21 November), and co-founder and executive chairman Mahmud Kamani took up the vice-chair role, despite calls from Frasers Group for him to step down.