I t has been another sob story for investors in Boohoo this year, with shares in the fashion retail group down by roughly a fifth in the year to date. Losses have more than tripled, and management is now raising millions of pounds to help manage its debt. That is not to mention a public spat with its largest single investor, Mike Ashley from Frasers Group.
So is there a light at the end of the tunnel for long-suffering shareholders? Boohoo, which was founded in Manchester in 2006, has for years been grappling with declining sales and intense competition from ultra-fast-fashion rivals such as Shein. A £39.3 million fundraising plan — via a new share placing, a retail offer and subscription agreements — is intended to reduce group borrowings and provide “strategic flexibility”.
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