Boohoo group cuts debt with £90 million Sheffield distribution centre disposal

Retail & Consumer Retail Written by: Ephrem Joseph 07:45 Thu 10 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ephrem Joseph Ephrem began his journalistic journey at Proactive in June 2021. With a strong academic background in Information Technology, his expertise particularly lies in the field of Cyber Security, Management Information Systems and Computer Forensics. Before joining Proactive, Ephrem worked as a researcher and lecturer at a number of leading universities, including the University of Portsmouth's Institute of Criminal Justice Studies, the University of Winchester’s Institute of Policing, and Jain... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Boohoo Group PLC ( AIM:DEBS ) View Price & Profile Boohoo group cuts debt with £90 million Sheffield distribution centre disposal Published: 07:45 10 Sep 2026 BST Boohoo Group PLC (AIM:DEBS) , which trades as Debenhams Group, has agreed to the £90 million disposal of automation assets at its Sheffield distribution centre and reassigned the site lease to Primark Stores Limited. The transaction is expected to reduce net debt to a negligible level by the end of February 2027 and forms part of the group’s shift towards a marketplace-led, capital-light business model. Boohoo received £76.5 million in cash on completion, with the remaining £13.5 million due when vacant possession is delivered early next year. The group is also entering into an agreement with a global third-party logistics provider to continue fulfilling stocked products and support expansion of its Delivered by Debenhams proposition beyond fashion. Following the disposal, annual depreciation is expected to fall by around £12 million, including £3 million linked to a right-of-use asset, while interest costs are forecast to decline by at least £10 million a year. Cash lease costs should also reduce by around £4 million annually. The move supports boohoo’s ambition for marketplace operations to account for well over 50% of gross merchandise value. GMV growth also accelerated during the second quarter after the group returned to growth in the first quarter. Boohoo Chief executive Dan Finley described the transaction as another step in accelerating the turnaround, adding that net debt is now expected to be negligible by year-end. A first-half trading update is scheduled for 17 September 2026. Continue reading