- John Lyttle was previously chief operating officer for about nine years at Primark
- Boohoo’s revenue has fallen massively since lockdown restrictions were relaxed
Boohoo’s chief executive will stand down after five years as the struggling fast-fashion retailer embarks on a review of its operations and brands.
The group, which owns Debenhams, PrettyLittleThing and Karen Millen, has kickstarted the search for a successor to John Lyttle as it undertakes a review of options for each division ‘to unlock and maximise shareholder value’.
Lyttle joined the Manchester-based group in 2019, having served as Primark’s chief operating officer for almost nine years, during which time the firm’s operating profits and sales more than doubled.
Like many online fashion brands, Boohoo enjoyed enormous growth after the Covid-19 pandemic led to clothes shops temporarily shutting or being subject to significant operating restrictions.
Demand has since slowed and trading has been further hit by supply chain issues, rising cost-of-living pressures, high customer return rates, and heavy competition from the likes of Chinese rival Shein.
Boohoo shares have plummeted by more than 90 per cent from their peak of 413p in June 2020. They were 0.3 per cent lower at 31.8p on Friday morning.
Boohoo’s turnover slumped by over £300million to £1.5billion in the financial year ending February, partly owing to weaker domestic demand, while its pre-tax losses jumped to £159.9million, from £90.7million the previous year.
Revenues have continued to fall, shrinking by 15 per cent to £620million in the six months to August, the retailer reported on Friday.
Lyttle told investors: ‘I believe there is huge potential in this business, and I will continue to work with the board to drive value for all shareholders whilst a successor is found.’
Boohoo further revealed it had struck a £222million debt refinancing deal to help fund its future development.
The package includes a £97million term loan, which must be repaid by August next year, and a £125million revolving credit facility running to October 2026.
Alongside this, Boohoo said it was looking to ‘unlock and maximise shareholder value’ because it believes the business ‘remains fundamentally undervalued.’
Mahmud Kamani, executive chairman and co-founder of Boohoo, said: ‘The business has evolved over the last few years and has an offer that is much wider than our original focus on young fashion.
‘The time is now right to consider options with regard to corporate structure, with the aim of maximising shareholder value.’
Founded in 2006, the company attracted controversy in the summer of 2020 after a Sunday Times investigation discovered that some of its suppliers in Leicester were paying workers below the minimum wage.
A review by Alison Levitt KC concluded that the firm’s monitoring of its Leicester supply chain was ‘inadequate’ but said it did not deliberately profit from the poor working practices.
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