The fast-fashion retailer has agreed to sell the automation equipment in its Sheffield distribution centre and transfer the site's lease to Primark for £90mn in cash. Boohoo has already received £76.5mn, with the remaining payment due when the site is handed over in early 2027.
The sale is expected to see Boohoo’s net debt fall to “negligible” levels by February 2027 (previously: below 1 times underlying cash profits).
Going forward, the transaction is expected to reduce depreciation, interest and cash lease costs by around £26mn per year.
The shares were up 17.7% in early afternoon trading.
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Boohoo key facts
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