Online fashion retailer Boohoo is renaming itself Debenhams in a major revival of one of Britain’s oldest and best known retail names.
Boohoo bought the 247 year old former department store chain out of administration for £55 million in 2021 after it collapsed during the pandemic and kept it trading as an online only retailer. All the stores, including the Oxford Street flagship, were shut down.
But today Boohoo said it had successfully turned around the Debenhams business which is now the “majority contributor to group profitability.”
As a result the “business will be rebranded and will now go forward as Debenhams Group.” Other brands in the group include boohoo, PLT, MAN, and Karen Millen.
The Debenhams name dates back to 1778 when William Clark opened a drapers store on Wigmore Street. In 1813 William Debenham joined him as a partner.
In a trading update the company said: “Debenhams is back. ..It has been repositioned as Britain's online department store and is underpinned by a new marketplace led business model.
“Debenhams is growing rapidly. The business model is stock-lite and capital-lite. It is very profitable and highly cash generative.
“For our consumers, Debenhams is once again becoming their destination of choice. It is an iconic British heritage brand with huge brand awareness and significant consumer trust.
“For our partners, Debenhams is becoming a partner of choice, providing access to millions of consumers and driving strong growth for those selling on the Debenhams platform. “
The company said it wanted to create a multi-billion gross sales business with a target margin of 20% on net sales.
Last year Debenhams generated gross sales of £654 million and net sales of £205 million, with a 12% EBITDA margin.
In a trading update the company said “recent trading has been tough” for its youth brands PLT, boohoo and MAN.
It said it a turnaround “will take time and that we have a period of substantial change ahead of us....We have addressed legacy stock issues and significantly reduced their operating costs. “
Group CEO Dan Finley, said: "We go forward as Debenhams Group. This is a defining moment in our journey, reflective of our new strategy, new leadership and new beginnings.
"Debenhams Group is sharply focused on maximising value for all shareholders. It will be at the forefront of global digital retail. It will be a leaner, faster and more technologically advanced business. I am confident our best days are ahead of us and I am excited for our future.”
