Debenhams Group (Boohoo) Stock Gains as Refinancing Aims to Bolster Turnaround Strategy

Debenhams Group (LON:DEBS), formerly known as Boohoo Group, said Thursday that it has successfully completed a £175 million refinancing, extending its debt maturity and providing enhanced financial flexibility.

Following the news, the company's shares have risen more than 6% in early Thursday trading. However, the stock is still down over 56% for the year-to-date.

The completion of the refinancing facility, led by TPG Angelo Gordon, has been received favorably. The new three-year facility extends the maturity to August 2028, replacing the previous £125 million revolving credit facility due in October 2026. The interest rate is set at the Bank of England base rate plus 7.3%.

The refinancing arrives amid a period of strategic reorganization for Debenhams Group. The company rebranded in March 2025, four years after acquiring the Debenhams brand, signaling a shift in focus.

The transition included the appointment of Phil Ellis as the new Chief Financial Officer, replacing Stephen Morana. The turnaround of the Debenhams brand itself has been completed and is now being used as a model to revamp segments elsewhere in the company's portfolio.

Despite the strategic moves, the stock has continued to struggle, with its market cap now at around 200 million. The company is now aiming to convert its younger brands into marketplaces, mirroring strategies employed by competitors like Next and Marks and Spencer, to improve financial stability and reduce returns.

Operational challenges have also impacted the group, including increased competition from Shein and Temu, as well as cost inflation.