Boohoo Rebrands as Debenhams Group
Boohoo has announced a significant rebranding, and that it will now be operating under the name Debenhams Group. This change follows the successful turnaround of Debenhams, the once-popular department store chain that Boohoo acquired in 2021 after its collapse during the pandemic. The group now aims to leverage Debenhams' legacy, repositioning it as a major contributor to its profitability. With a focus on a lean, marketplace-led business model, Debenhams is poised to grow rapidly and become a dominant player in the online retail space.
Debenhams, which was originally founded in 1778, now serves as an online department store with a diverse range of brands, including Wallis, Burton, and Oasis. The group has confirmed that the Debenhams platform, which generates £205 million in net sales and £654 million in GMV, is at the heart of its recovery. In the coming years, the company aims to achieve a multi-billion-pound GMV with an EBITDA margin of around 20%.
Despite the rebranding, the group continues to face challenges. Boohoo’s youth brands, including BoohooMan and PrettyLittleThing, saw a 16% drop in revenue year-on-year, and the company expects to report adjusted EBITDA of £40 million. One-time costs, including redundancies and the closure of its US distribution center, have also impacted the financials. However, the company remains optimistic, stating that its marketplace approach will reduce stockholding requirements and improve profitability.
Dan Finley, the company’s CEO, stressed that the success of Debenhams’ turnaround would serve as a blueprint for the recovery of Boohoo’s other brands. “The turnaround of our youth brands is underway and will take time,” Finley said, acknowledging the challenges that lie ahead for Boohoo’s core brands.
Phil Ellis, the current finance director of Debenhams, has been appointed as the group’s new CFO, replacing Stephen Morana. With this leadership shift and the strategic rebrand, Debenhams Group is betting on its refreshed business model to drive long-term growth.
