DEBENHAMS is back as fast-fashion retailer Boohoo takes the bust department store’s name.
The online group yesterday shocked the City by announcing the decision alongside a radical overhaul of its strategy to an online marketplace selling other brands.
Analysts and industry experts told The Sun it could pave the way for a break-up and sale of some of its struggling young fashion brands.
Boohoo bought Debenhams out of bankruptcy for £55million in 2021 but none of its 124 stores.
At the time, Boohoo was enjoying the online boom as bored young shoppers spent lockdowns buying outfits from their smartphones and it tapped into rapidly changing social media fashion trends.
However, since Covid restrictions lifted, Boohoo’s share price has collapsed by 90 per cent.
Its sales growth has stalled, losses have soared and it has faced intense competition from rival fast-fashion site Shein.
Daniel Finley, who was only promoted in November from leading the Debenhams division to chief executive of the group, yesterday said that he wanted to use his turnaround of the former department store business as “a blueprint for the wider turnaround of the group”.
In a major strategy shift, the retailer will go from being driven by its own brands, designing and buying stock in its own warehouse to having a “stock-lite and capital-lite” model.
Analysts welcomed the shake-up, saying that Debenhams was now making around half of the group’s earnings.
Still, the company’s shares fell by another 4.6 per cent yesterday to 26p.
The shift will mean Debenhams will go up against the likes of strong retail giants Next, which has a booming online marketplace, Marks & Spencer, which is rapidly adding third-party fashion brands, John Lewis and even Mike Ashley’s Frasers Group.
The company revealed that Debenhams made revenues of £204.6million last year, nine per cent more than the previous year.
Its youth brands, which include the Boohoo label, PrettyLittleThing and NastyGal, made almost four times as much money although this was a fifth down on the previous year.
Mr Finley yesterday posted on Linkedin: “This isn’t just a new beginning, it’s a new dawn taking flight”. He signed off with “LFG” — short for “let’s f go” and a rocket emoji.
Cookie egg win
DOMINO’S PIZZA has almost sold-out of its Cadbury Creme Egg cookies, a month before Easter and a year after the treat sparked an obesity outcry.
Boss Andrew Rennie confirmed his chain is on track to shift all of its limited supply of one million Creme Eggs for its cookies, which have 370 calories each.
Ex-health minister Lord Bethell branded bosses “irresponsible” over the snack.
But Rennie said consumers had their “eyes wide open”, as he reported profits up 8.4 per cent to £107.3million.
Cut-price bids for WHSmith
Bidders for WHSmith’s high street business are understood to have offered significantly less than the expected price tag[/caption]
THE two bidders for WHSmith‘s high street business are understood to have offered significantly less than the £100million price tag fancied by most analysts.
Alteri, which owns Bensons for Beds, is going head-to-head with Modella Capital, which owns Hobbycraft and The Original Factory Shop, to strike a deal which will remove WHSmith’s name from the high street after 233 years.
Analysts had suggested the business could fetch between £100million and £130million.
However, sources scoffed at this price. They said the two offers had different proposals attached but the cash value was well below £100million.
This is because the deal does not include any freehold store sites or branding, and only limited stock.
It is understood that the situation is not so perilous to require WHSmith to offer a dowry to bidders to take the high street arm off its hands.
Car loan compo
MILLIONS of motorists who were mis-sold car finance deals could receive automatic compensation.
The Financial Conduct Authority yesterday said it would compel lenders to tell customers how much they are owed if the Supreme Court rules next month that loans were mis-sold.
Analysts estimate payouts could average around £1,100 per person.
It follows a landmark ruling last year that car dealers had broken the law by receiving commission on finance deals without buyers being aware.
Two fingers to Mike Ashley
Boohoo is rubbing salt in Mike Ashley’s wounds by rebranding itself Debenhams[/caption]
STAND back. Mike Ashley might be about to explode. The tycoon was already bruised about Boohoo beating him to buying Debenhams.
He even built up a big stake in Boohoo to try and wrestle back power, only for the board to snub him and promote Daniel Finley as boss.
In December investors denied him a board seat even after he waged a costly campaign. Now — in the ultimate two-fingered snub — Boohoo is rubbing salt in the wound by rebranding itself Debenhams.
“Big Mike” had that idea first — renaming Sports Direct empire Frasers Group to improve its reputation after buying the House of Fraser store business.
Mr Finley would not reveal yesterday if he had run the rebrand past Mr Ashley, saying: “We think there’s a huge opportunity to deliver for shareholders — that includes Mike and Frasers.”
VW’s bad to wurst
VOLKSWAGEN is close to selling more sausages than cars in a bizarre blow for the German motor giant.
VW revealed that last year it sold a record 8.5million “currywurst” dishes — sausages with ketchup and curry powder.
By comparison, Europe’s biggest car maker sold 9million vehicles, 3 per cent lower than the year before.
VW’s currywurst originated in its factory canteen but is now sold widely in supermarkets.
