Debenhams Plans PrettyLittleThing Sale, Burnley Hub Closure, 1,200 Job Losses

Debenhams Group, previously known as Boohoo Group, is experiencing widened pre-tax losses of £264 million for the year ending February 2025 amid declining sales, particularly in its youth brands Boohoo, PrettyLittleThing (PLT), and BoohooMan, which saw revenues fall by over 20% to £1.5 billion. The group is considering strategic measures including the potential sale of PrettyLittleThing—acquired fully between 2016 and 2020 for over £260 million—and the closure of distribution centers in Burnley and the US, which could result in significant job losses. CEO Dan Finley emphasized that the company is undertaking a multi-year turnaround plan focused on profitability, cash generation, and transforming the Debenhams brand to become a preferred shopping destination. Despite challenges, the Debenhams arm, comprising Warehouse, Oasis, Dorothy Perkins, and an online marketplace, saw revenue growth to £654 million, though some brands like Karen Millen experienced sales declines. The group has already achieved around £50 million in annual savings and reduced headcount by 30% but continues to explore options to stabilize its financial position amid competitive pressures from fast-fashion rivals and changing consumer spending. These developments reflect a broader business review aimed at addressing underperformance and repositioning the company for sustainable profit growth.