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- John Lyttle was previously chief operating officer for around nine years at Primark.
- Boohoo’s revenue has fallen massively since lockdown restrictions were eased
PrettyLittleThing boss Umar Kamani is expected to take over as Boohoo chief executive as incumbent John Lyttle prepares to step down after five years.
The struggling fast fashion retailer revealed Lyttle’s planned departure on Friday and promised a review of its operations and brands.
The group, which owns Debenhams, PrettyLittleThing and Karen Millen, said it has launched a search for a successor to John Lyttle while carrying out a review of options for each division “to unlock and maximize value for shareholders”.
Exit: Boohoo chief executive John Lyttle is to step down after five eventful years at the fast fashion retailer.
Industry insiders predict Kamani, 36, is the favorite to succeed Lyttle as chief executive of the group, which owns Debenhams, PrettyLittleThing and Karen Millen.
Last month, the Manchester businessman made a dramatic return to PrettyLittleThing after previously stepping away from the business he built, vowing to “return the beautiful brand where it belongs”.
Lyttle joined the Manchester-based group in 2019, having worked as Primark’s chief operating officer for almost nine years, during which time the company’s operating profits and sales more than doubled.
Like many online fashion brands, Boohoo enjoyed huge growth after the Covid-19 pandemic caused clothing stores to temporarily close or become subject to significant operating restrictions.
Since then, demand has slowed and trade has been further affected by supply chain issues, rising cost of living pressures, high customer return rates and strong competition from businesses. like Chinese rival Shein.
boohoo shares have plummeted 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 plunged by more than £300m to £1.5bn in the financial year to February, partly due to weaker domestic demand, while its pre-tax loss rose to £159, 9 million, up from £90.7 million the previous year.
Revenue has continued to fall, falling 15 per cent to £620 million in the six months to August, the retailer reported on Friday.
Lyttle told investors: “I believe there is enormous potential in this business and I will continue to work with the board to create value for all shareholders while a successor is found.”
Boohoo further revealed that it had agreed a £222 million debt refinancing deal to help fund its future development.
The package includes a £97m term loan, due to be repaid by August next year, and a £125m revolving credit facility that will run until October 2026.
In addition to this, Boohoo said it was looking to “unlock and maximize shareholder value” because it believes the business “remains fundamentally undervalued”.
Mahmud Kamani, chief executive and co-founder of Boohoo, said: “The business has evolved over recent years and has an offering that is much broader than our original focus on youth fashion.
“The time has come to consider options regarding corporate structure, with the goal of maximizing shareholder value.”
Founded in 2006, tThe company generated controversy in the summer of 2020 after a Sunday Times investigation discovered that some of its suppliers in Leicester were paying their workers less than the minimum wage.
A review by Alison Levitt KC concluded the company’s monitoring of its Leicester supply chain was “inadequate” but said it did not deliberately benefit from poor working practices.
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