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UK: Boohoo CEO to Step Down as Strategic Review Launched

Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim
Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim
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UK: Boohoo CEO to Step Down as Strategic Review Launched

Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim
Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim

British online fashion retailer Boohoo said its CEO would step down as the group announced a review of its strategic options to try to improve performance after sales slumped.

The company, whose brands include boohoo, PrettyLittleThing, Debenhams and Karen Millen, said on Friday that John Lyttle had informed the board of his intention to stand down but would stay on whilst a successor is found.

The company, like UK peer ASOS, was a winner during the pandemic, which drove a boom in online shopping. It has struggled since, hurt by supply chain problems, higher product returns, competition from rivals such as Shein and subdued consumer demand. Boohoo shares are down 22% so far this year.

Boohoo also reported a 7% fall in first half sales by gross merchandise value (GMV) and said it has agreed a new 222 million pounds ($290 million) debt facility.

"The board strongly believes there is potential to unlock shareholder value and is exploring options to deliver on this," it said.

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Sources: Shein Aims for London IPO by Mid-year

FILE PHOTO: A company logo for fashion brand Shein is seen on a pile of gift bags on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo
FILE PHOTO: A company logo for fashion brand Shein is seen on a pile of gift bags on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo
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Sources: Shein Aims for London IPO by Mid-year

FILE PHOTO: A company logo for fashion brand Shein is seen on a pile of gift bags on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo
FILE PHOTO: A company logo for fashion brand Shein is seen on a pile of gift bags on its Christmas bus as part of a nationwide promotional tour in Liverpool, Britain, December 14, 2024. REUTERS/Phil Noble/File Photo

Online fast-fashion retailer Shein is aiming to list in London in the first half of the year, according to two sources with direct knowledge of the matter, assuming it gains regulatory approvals for the initial public offering.
The IPO could be completed as early as Easter, which is April 20, one of the people said.
A visit to China by Britain's finance minister Rachel Reeves starting on Saturday, during which she will meet with vice premier He Lifeng to discuss economic and financial cooperation, could help progress the regulatory approvals Shein needs, the source added.
A second person with knowledge of the matter said Shein, founded in China in 2012, is working towards listing in the first half of this year, but the definitive timeline is still in flux.
The London listing push comes after the company ended its attempt at a US IPO after pushback from lawmakers concerned about risks connected to China and alleged labor malpractices, Reuters reported.
The head of Britain's Financial Conduct Authority, which is in charge of assessing and approving flotations like Shein's IPO, is accompanying Reeves on the trip to Beijing and Shanghai and will meet with regulatory partners there.
Shein declined to comment, the FCA said it does not comment on potential listing applications, and Britain's finance ministry did not reply to Reuters' questions.
Even though it moved its headquarters from Nanjing to Singapore in 2022, Shein also requires permission from the China Securities Regulatory Commission, making it subject to offshore listing rules, as most of its 5,800 contract manufacturers are in China.
New rules passed by the CSRC in 2023 allow it to vet and potentially block offshore listings.
The CSRC did not immediately reply to questions about Britain's visit and Shein's IPO.
Shein is walking a political tightrope as it tries to show it has measures in place to limit the risk of human rights violations in its supply chain while avoiding any direct claims about China's Xinjiang province - a top cotton-producing region where the United States and NGOs have accused the government of forced labor and other abuses against Uyghur people.
Beijing denies any abuses, and Chinese authorities have hit back at clothing brands that say they don't use Xinjiang cotton.
Shein's general counsel for Europe, the Middle East and Africa, Yinan Zhu, on Tuesday declined to directly answer when asked by a British parliamentary committee whether the retailer's clothes contain cotton from China or Xinjiang, or whether it tells suppliers not to source from the province.
Zhu asked instead to provide the committee with written answers, and said Shein complies with relevant laws in all jurisdictions.