Boohoo bosses are considering splitting up the company following shareholder pressure to turnaround its fortunes.
The Times reported that various shareholders have urged the board to spin off some of its top performing brands as it seeks to boost its share price, which has dropped more than 85% over the last five years.
Insiders believe there is potential value in offloading or spinning off Karen Millen and Debenhams and selling young, fast fashion retailers such as PrettyLittleThing, Boohoo and BoohooMan.
One source said: “The sum of the parts at Boohoo is greater than the current market cap. Therefore, if you want to realise that you’ve got to do one thing, ultimately, which is to break it up.”
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There is no certainty that the business would be split up or how it would be divided, however, sources said that co-founders Carol Kane and Mahmud Kamani were considering all options.
An insider close to the chain said: “There’s no surprise given where the share price is that [its bosses] are looking at all options for shareholder value.”
They added that Kamani was “listening to investor calls. He’s more aligned on this than anybody else”.
Boohoo, which recently opened a new showroom for its flagship brands, is believed to be waiting to assess its Christmas trading performance before finalising a plan, according to The Times.
A spokeswoman for the retailer said: “Boohoo Group does not comment on rumour and speculation.”
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