Boohoo repays £50 million loan as founder snaps up shares
Boohoo Group has today announced that it has repaid £50 million of its £97 million term loan agreed as part of its £222 million debt refinancing deal.
Boohoo launched a business review in October as its CEO John Lyttle stepped down and unveiled a £222 million debt refinancing deal. The £97 million loan, due in August next year, was agreed as part of the deal.
Dan Finley, Boohoo Group's recently appointed Chief Executive Officer, 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. The Board would like to thank our banking syndicate for their continued support."
Last month, the company announced that it had received 'Lender Consent' from its bank lenders for its £39.3 million fundraising, which was completed on 14 November. These efforts are part of a turnaround plan under Finley.
In its most recent financial statement, Boohoo reported a pre-tax loss of £147.3 million in the six months up to 31 August 2024.
At the end of last week, it also came to light that Carol Kane, who co-founded Boohoo with Mahmud Kamani, bought 294,350 of the company’s shares for £100,079.
