Boohoo, the popular online fashion retailer, has announced that it will rebrand as Debenhams Group. This major shift comes in response to a 21% fall in sales from its core youth fashion brands, including Boohoo, MAN, and Pretty Little Thing, which collectively generated £947m. CEO Dan Finley acknowledged that the company “lost its way” during a period of fierce competition from rivals like Shein and amid a growing trend of consumers opting for secondhand clothes.
Finley emphasized that the successful turnaround of the Debenhams brand bought out of administration in 2021 offers a promising blueprint for the future. “Debenhams is back,” he declared, positioning the iconic British brand as the cornerstone of the company’s transformation into Britain’s leading online department store.
The rebranding follows a challenging period for the group. After announcing a strategic review in October and the surprise departure of former CEO John Lyttle, analysts had speculated that Boohoo might sell off labels such as Karen Millen and Debenhams to refocus on its younger demographics. Instead, the company has opted for a full-scale rebrand under the Debenhams name.
Cost-cutting measures have already been implemented, including a £50m reduction through staff cuts, the closure of its US distribution centre, and writing off £40m in surplus stock. Despite these efforts, shares have fallen by about a fifth since the start of the year, with a 4% drop reported on Tuesday following the announcement.
As the company refocuses its strategy, the future of its other labels remains under review, leaving open the possibility of further changes as it adapts to a rapidly shifting retail landscape.
