Boohoo Group PLC has announced that CEO John Lyttle is set to depart after a five-year tenure, triggering the search for a new leader at the fast fashion firm.
John Lyttle, who previously served as Primark's chief operating officer before joining Boohoo in 2019, notified the board of his decision to step down today.
The Manchester company confirmed that Lyttle will remain with the team during the transition period while they seek a replacement, "to ensure a smooth transition".
Commenting on his departure, Lyttle said: "Over the last five years I have been proud to lead the group and 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."
In conjunction with this news, the board has communicated to its shareholders that it will be reviewing strategic options for each division, maintaining that the group is "fundamentally undervalued" in light of recent progress, as reported by .
Over the past year and a half, Boohoo claims to have implemented a number of key strategic measures aimed at enhancing operational efficiency and refining the cost structure.
The board expressed its strong conviction in the potential to enhance shareholder returns and is actively investigating ways to achieve this objective.
In a separate development, Boohoo also disclosed today that it has secured a new £222 million debt financing deal, which will fund the next stage of the group's growth.
The group has secured a financial package that includes a £125 million revolving credit facility due to run until October 2026 and a £97 million term loan, which is set for repayment by August 2025. Legal firm Ashurst alongside Rothschild & Co provided advisory services on the refinancing arrangement.
Boohoo anticipates releasing its half-year results for the period ending 31 August 2024 come early November of the same year.
Tthe company has suggested that in the latter half of FY25, it expects to see an increase in gross merchandise value along with a stronger performance in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) compared to its first half.
Group Executive Chairman Mahmud Kamani said: "We are delighted to have agreed a new lending facility which shows the support of our existing banks and their confidence in the group.
"The business has evolved over 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," adding to the discussion of the company's forward-looking strategy."
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