“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”, announced CEO Dan Finley this morning, as he announced that Boohoo would be rebranded as Debenhams Group.
Debenhams has been successfully turned around since it was acquired out of administration in 2021, and has been repositioned as Britain’s online department store and is underpinned by a new marketplace led business model. Growing rapidly, the Debenhams business model is stock-lite and capital-lite. and it is very profitable and highly cash generative.
Debenhams is back isn’t just a slogan, its business model and its technology will be at the epicentre of the Group going forward. It is the driving force of the business and provides the blueprint for the wider turnaround of the Group. The company says that the Debenhams marketplace-led business model, proprietary technology and lean operating model will be extended across the Group, adding that this is critical to the turnaround of the youth brands and will help accelerate value creation in Karen Millen.
Going forward as Debenhams Group is reflective of the new strategic direction, leadership change and the major transformation that is being undertaken. It will strengthen brand recognition and trust, leveraging the well-established and iconic Debenhams name; enhance supplier and partner relationships; drive alignment behind the multi-brand marketplace strategy; unite colleagues; and support the Group’s ambitious growth plans.
The Group will now accelerate its transition to the Debenhams led business and operating model. In recent months, the Group has acted decisively to reposition itself. The US distribution centre has been closed. A successful equity raise was completed. The London office was sold. £50m of annualised head office headcount cost savings have been delivered. The cost base is under continuous review.
We’ve created a thriving community of brand partners with millions of consumers and we are growing rapidly. The most exciting thing is that we are just getting started. We see a clear path to scaling this into a £multibillion GMV business with strong profitability.
The successful turnaround of Debenhams is our blueprint for the wider turnaround of the Group. The turnaround of our Youth Brands is underway and will take time. I have inherited significant challenges. I can see their future potential as they evolve into fashion-led marketplaces and adopt a leaner operating model
We go forward as Debenhams Group. This is a defining moment in our journey, reflective of our new strategy, new leadership and new beginnings.
– Dan Finley, Group Chief Executive Officer, Debenhams Group
