Boohoo considers breaking up to revive struggling fashion brand
- Boohoo is experiencing a significant decline in share price and increasing losses due to competition and the post-pandemic recovery of high street shopping.
- Shareholders are urging the board to consider breaking up the company and spinning off its more successful brands to improve financial performance.
- The potential restructuring aims to boost the stock value, which has fallen by over 85% in the past five years.
Boohoo, the online fashion retailer based in Manchester, is facing significant challenges as it grapples with a steep decline in its share price and increasing losses. This downturn has been attributed to intense competition in the fashion market and a resurgence of high street shopping following the pandemic. Shareholders have expressed concerns over the company's performance, prompting discussions among the board about potential strategies to revitalize the business. One of the options being considered is the possibility of breaking up the company by spinning off its more successful brands, such as Debenhams and Karen Millen. This move aims to enhance shareholder value and improve the stock's performance, which has plummeted by over 85% in the last five years. The situation reflects broader trends in the retail sector, where online retailers are struggling to maintain their market position against traditional brick-and-mortar stores that are regaining popularity.