Disposal of Sheffield Distribution Centre for £90m
Boohoo Group Plc has sold the automation in its Sheffield distribution centre and reassigned the lease to Primark Stores Limited for £90m in cash, with £76.5m received on completion and the remaining £13.5m due early next year. This transaction, aligned with the Group's transition to a capital-lite marketplace model, will significantly reduce net debt to a negligible level by February 2027. The disposal will also lead to annual savings of approximately £12m in depreciation, at least £10m in interest, and £4m in cash lease costs. The company reported accelerated GMV growth in the second quarter, following a return to growth in the first quarter.
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596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended).
boohoo group plc
("Debenhams Group", the "Group" or the "Company")
Disposal of Sheffield Distribution Centre for £90m
Net debt to be reduced to a negligible level
The Debenhams Group turnaround continues at pace as it transitions to a marketplace-led business model that is capital-lite, stock-lite, cost-lite and cash generative. The Group's ambition is for the marketplace to represent well over 50% of GMV.
Consistent with this strategy, the Group announces that it has sold the automation in its Sheffield distribution centre and reassigned the lease to Primark Stores Limited for consideration of £90m (the "Transaction") in cash. £76.5m was received on completion and the remaining £13.5m will be received on vacant possession early next year.
Concurrently, the Group is entering into an agreement with a global 3PL provider that will enable it to continue to fulfil its stocked product as efficiently as it does today and will allow the Group to scale its Delivered by Debenhams fulfilment proposition beyond fashion.
The Transaction will result in the Company significantly deleveraging, and we now expect net debt to be negligible at our year-end (Feb '27).
Going forward, depreciation will reduce by c.£12m per annum (£3m of which related to a right-of-use asset), interest will reduce by at least £10m per annum and cash lease costs will reduce by c.£4m per annum.
As previously announced, the Company returned to GMV growth in Q1 and the Board is pleased to report that growth accelerated in Q2. We will provide a H1 trading update on 17 September 2026.
Dan Finley, Group Chief Executive Officer, commented:
"The Debenhams Group turnaround continues at pace, and this transaction helps accelerate our progress. As a result of the disposal, net debt is now expected to be negligible at our year-end (Feb'27). We are also pleased to report that GMV growth has accelerated in Q2."
About Debenhams Group
Debenhams Group is an online platform for fashion, home and beauty, serving millions of customers across five shopping destinations: Debenhams, Karen Millen, boohoo, MAN and PLT. Debenhams Group dates back to 1778 when William Clark, a retail pioneer of the time, opened the UK's first department store. Today, Debenhams is Britain's online department store, sitting alongside the Group's fashion-led marketplaces.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.