Boohoo Group PLC (AIM:BOO) has announced its chief executive will depart the business as a review of options is launched and after a debt refinance.
John Lyttle has informed the board of his intention to step down after five years in the role, the company said on Friday.
A new £222 million debt refinancing deal was also unveiled, consisting of a £125 million revolving credit facility to October 2026 and a £97 million loan due next August.
Boohoo added the business review would cover options for each of its divisions, including the Debenhams, Young Fashion and Karen Millen brands.
“The board believes that the group remains fundamentally undervalued,” Boohoo said, despite efforts to drive cost efficiencies and reinvigorate Debenhams and Karen Millen.
“The board strongly believes there is potential to unlock shareholder value and is exploring options to deliver on this.”
Boohoo also provided trading figures for the first half of the year, which showed revenue down 15% at £620 million and a drop in adjusted earnings from £31 million to £21 million.
"The board is focused on ensuring it takes the right steps to drive Boohoo in the interest of all its stakeholders,” executive chairman Mahmud Kamani commented.
“We are delighted to have agreed a new lending facility which shows the support of our existing banks and their confidence in the group.
“The business has evolved over the last few years and has an offer that is much wider than our original focus on young fashion.
“The time is now right to consider options with regard to corporate structure, with the aim of maximising shareholder value.”
Shares fell 4.6% on Friday.