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Boohoo group CEO Dan Finley has said that Debenhams single-handedly brings “greater value” than the market cap of the rest of the Boohoo brands, reaffirming his confidence in the group and how he thinks the brand is currently undervalued.
In a video posted on the boohooforall website, Finley said: “I believe our group is fundamentally undervalued. I believe Debenhams alone with the progress that we’ve made and the opportunities that lie ahead, has a greater value than the entire market cap of our group today (£500m+).
“We’ve proven the marketplace model with Debenhams and over the last 12 months we’ve taken nine of our fashion labels and transformed them too into fashion-led marketplaces returning them to profitability. This experience gives me a strong foundation to replicate this success across our group.”
The CEO, who was appointed on 1 November, also spoke about the upcoming business review that the group announced earlier in October after securing a £222m debt refinancing agreement to support its “next phase of development”.
Finley added: “We will expand the marketplace model across the group, streamline our operating model, create a lean, agile and purpose driven business.”
He also acknowledged the recent challenges the group had to face, alluding to the group’s row with Frasers.
He said: “There was a lot of noise in the press, an attempted disruption of our business. Let me be clear, I’m fully focused on leading this business and determined to deliver value for all our shareholders.”
“The board unanimously and strongly recommends that shareholders vote against all resolutions.”
Finley joined Boohoo Group as CEO of Debenhams in January 2022, following the acquisition of the brand out of administration for £55m.
