Boohoo sees share uplift as hedge fund Citadel takes 5% stake
Shares at Boohoo today received a boost after US-based hedge fund Citadel acquired a 5% stake in the online fast fashion retailer.
Shares rose 3.7% (2.04p) to 57.1p after Citadel emerged as Boohoo’s fifth-biggest backer. The hedge fund was founded by Chief Executive Ken Griffin, who has an estimated net worth of £21 billion and backed the Ricketts family in their bid to buy Chelsea from Roman Abramovich.
Citadel manages $51 billion in assets, making it one of the world’s biggest hedge funds in the financial market.
The news comes after Boohoo reported its first sales drop in the UK last month, revealing an 8% decrease in revenue. Meanwhile, shares are at six-year lows, having lost 82% in the past 12 months.
Manchester-based Boohoo, whose Co-Founder Mahmud Kamani remains the largest single shareholder, has been hit by a surge in shipping costs, an increase in customer returns and investor worries amid a slowing economy.
John Lyttle, CEO of Boohoo Group said in the first quarter results statement that the company is "focused on optimising its financial and operational performance" as it attempts to take advantage of future growth opportunities.
