Fast fashion giant Boohoo has sold its London office for £49.5m in cash as it looks to strengthen its balance sheet at the end of a turbulent year. The group’s board had been locked in battle with Frasers Group over the appointment of either Frasers chief Mike Ashley or restructuring expert Mike Lennon to its board.
But at a general meeting on Friday, shareholders rejected both appointments, with CEO Dan Finley saying: "Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders." This morning, Manchester's Boohoo announced that Mr Finley, 42, was being formally appointed to the board. It also announced it had completed the sale of its office in Great Pulteney Street, Soho, for £49.
5m in cash to independent property fund Global Holdings UK. In a statement, Boohoo said: “The action taken to dispose of this non-core and non-strategic asset will further strengthen the company's balance sheet. “Part of the proceeds will be used to pay down, in full, the remainder of the term loan, which was due for repayment in August 2025.
This will leave the business with a £125m revolving credit facility which is sufficient for its needs going forward.”.
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