Boohoo's lenders decline debt repayment extension as sales plumet

Boohoo's attempt to extend the repayment deadline on a £325 million debt has been rejected by some of its lenders, further tightening the fast fashion retailer's purse strings as it continually faces dipping sales.

According to The Telegraph, the company said it had been able to push out the cut-off on the £250 million of the borrowing by a year, to March 2026. A spokesman said it had received the support of six "household name" banks.

However, lenders behind a £75 million portion of the revolving credit facility declined to give Boohoo another year to pay it back. Reportedly, banks include a leading Italian institution. As agreed in 2022, the sum will still need to be paid back by March next year.

A spokesman for the retailer said: "Boohoo remains a strong, well-capitalised business with ample surplus liquidity. The agreed reduction in the [revolving credit facility], which will take effect in March 2025, reflects Boohoo’s lower requirement for revolving credit and re-affirms business-as-usual operations. Boohoo continues to expect to publish final results in May."

In its interim update in October, Boohoo’s half-year losses widened to £21.2 million compared to £11.8 million a year earlier. It expects revenues to fall by as much as 17%.

Boohoo's challenges first started in 2020 when it was hit by a slew of modern slavery allegations. In October 2023, it was cautioned with a £100 million lawsuit after "poor working conditions" and "low rates of pay" in its Leicester factories,  causing the company's value to plummet by £1.1 billion. This, coupled with facing its rival Shein has caused the company's finances to take ongoing hits.

Last month, Boohoo's CFO Shaun McCabe stepped down from his role "by mutual agreement and with immediate effect". He is set to be replaced by Stephen Morana, who will join the business on 19 February.