Debenhams returns after Boohoo group announces major update

The group's CEO said that the iconic British heritage brand had been successfully turned around and 'rebuilt for the future'

Debenhams is back as fashion retailer Boohoo has renamed itself. The company announced on Tuesday that the decision to rebrand comes after a business review confirmed that Debenham’s operating model was the “driving force” of the business.

The Debenhams platform, which includes labels like Wallis, Burton, Warehouse, and Coast, generates net sales of £205million and gross merchandise volume (GMV) of £654million. It will have a multi-billion GMV and a core earnings margin on net sales of about 20 per cent in the medium term, the company said.

Also announced was the appointment of Phil Ellis as the group’s chief financial officer and a member of the board, replacing Stephen Morana. Ellis has previously worked for JD Sports, Shop Direct, and Gamestation.

Dan Finley, CEO, said: “Debenhams is back. The iconic British heritage brand, bought out of administration, has been successfully turned around. Rebuilt for the future and transformed into Britain’s leading online department store.”

He added: “We see a clear path to scaling this into a multibillion-pound GMV business with strong profitability. The successful turnaround of Debenhams is our blueprint for the wider turnaround of the group.”

The turnaround of the group’s youth brands, PLT, Boohoo, and BoohooMan, is “underway and will take time”, Finely confirmed, adding that he had “inherited significant challenges” when he took over last October. The youth brands will be transitioned into fashion-led marketplaces, he said.

Boohoo bought Karen Millen in 2019 for £18.2million and later acquired Debenhams in 2021 for £55million. It turned both into online-only brands.

Despite success during the pandemic thanks to the rise in online shopping, Boohoo has since struggled to compete with cheaper fast-fashion brands like Shein and Temu.