boohoo completes London office sale; Frasers pursues board position
boohoo group PLC on Monday announced it has completed the sale of its London office in Soho.
The Manchester, England-based online seller of fast fashion also is the owner of the PrettyLittleThing and Debenhams brands.
The property has been sold to Global Holdings UK Ltd, an independent property fund, for £49.5 million.
The proceeds will be used to strengthen the company’s balance sheet.
boohoo will use the funds to pay down, in full, the remainder of a term loan, which was due for repayment in August 2025. This will leave the business with a £125 million revolving credit facility, which is ‘sufficient for its needs going forward’.
Shares in boohoo were 0.5% higher at 33.30 pence each in London on Monday morning.
Separately, Sports Direct-owner Frasers Group PLC reacted to the news that boohoo shareholders on Friday voted against appointing founder Mike Ashley or insolvency expert Mike Lennon to the boohoo board.
The FTSE 100-listed retailer, which also owns House of Fraser, and has a 27% stake in boohoo, noted that the boohoo board has invited Frasers to propose an alternative candidate for director.
Frasers said it will put forward a ‘highly qualified candidate in due course and fully expect boohoo’s board to uphold their commitment without hesitation or delay’.
boohoo has insisted that Ashley and Lennon would have ‘irreconcilable conflicts of interest’.
But it conceded that it was willing to have ‘constructive’ talks about Frasers joining its board.
The war of words came to a head on Friday, when boohoo shareholders voted roughly by two-to-one against appointing Ashley or Lennon to the board.
Shares in Frasers were 1.3% lower at 618.50p each in London on Monday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.