Boohoo office sale stalls as bidder walks away

Drapers revealed in August that Boohoo Group was exploring a sale of its office building in London's Soho and discussions with prospective buyers were underway.

According to The Telegraph, an Israeli property investor has abandoned plans to acquire the office in Soho for around £60m amid concerns raised by a survey.

It comes as Boohoo Group is looking for ways to shore up its balance sheet ahead of a £47m debt repayment in August next year.

A spokesperson for Boohoo said: "We are in active negotiations with regard to the sale of our London office."

Boohoo purchased the office block for £72m in 2021 following a series of acquisitions. The five-storey building houses 400 to 500 employees from the group's London-based brands including Karen Millen, Coast, Oasis, Debenhams, Dorothy Perkins, Burton and Wallis, which it bought between 2019 and 2021.

Last week, Mike Ashley's Frasers Group, which owns 28% of Boohoo, wrote to Boohoo shareholders to warn against a "fire sale" of assets, as Ashley intensified his campaign for a seat on the board.

Meanwhile, Boohoo Group is understood to have launched a redundancy programme at its Manchester head office as part of a cost-saving plan led by CEO Dan Finley.