Boohoo boss John Lyttle is quitting after five tumultuous years

PrettyLittleThing boss Umar Kamani is tipped to take over as CEO of Boohoo, while incumbent John Lyttle prepares to step down after five years.

The struggling fast-fashion retailer announced Lyttle’s proposed departure on Friday as it promised an overhaul of its operations and brands.

The group, which owns Debenhams, PrettyLittleThing and Karen Millen, said it has boosted the search for John Lyttle’s successor by exploring options for each division “to unlock and maximize shareholder value”.

Industry insiders predict Kamani, 36, is favorite to succeed Lyttle as chief executive of the group, which owns Debenhams, PrettyLittleThing and Karen Millen.

Last month the Manchester entrepreneur made a dramatic return to PrettyLittleThing after previously stepping away from the business he built, promising to ‘bring the beautiful brand back to where it belongs’.

Lyttle joined the Manchester-based group in 2019, after serving as Primark’s Chief Operating Officer for almost nine years, during which time the company’s operating profit and revenue more than doubled.

Like many other online fashion brands, Boohoo experienced tremendous growth after the Covid-19 pandemic led to clothing stores having to temporarily close or be subject to significant operating restrictions.

Since then, demand has declined and trade has been further hit by supply chain issues, rising cost of living pressures, high levels of repeat customers and fierce competition from the likes of Chinese rival Shein.

Boohoo shares have plummeted by more than 90 per cent from their peak of 413p in June 2020. They were down 0.3 per cent at 31.8p on Friday morning.

Boohoo’s turnover fell by more than £300m to £1.5bn in the financial year ending February, partly due to weaker domestic demand, while pre-tax losses widened to £159.9m from £90, 7 million the year before.

Sales have continued to fall, shrinking 15 percent to £620 million in the six months to August, the retailer said on Friday.

Lyttle told investors: “I believe there is tremendous potential in this company, and I will continue to work with the board to create value for all shareholders while a successor is identified.”

Boohoo further revealed that it had entered into a £222m debt refinancing deal to help finance its future development.

The package includes a £97m term loan, due to be repaid by August next year, and a £125m revolving credit facility running until October 2026.

In addition, Boohoo said it wanted to “unlock and maximize shareholder value” as it believes the company “remains fundamentally undervalued.”

Mahmud Kamani, executive chairman and co-founder of Boohoo, said: “The company has evolved in recent years to offer a offering that is much broader than our original focus on young fashion.

‘The time is now right to consider options regarding the corporate structure, with the aim of maximizing shareholder value.’

Founded in 2006, TThe company sparked controversy in the summer of 2020 after a Sunday Times investigation found that some of its suppliers in Leicester were paying workers below the minimum wage.

An investigation by Alison Levitt KC concluded the company’s oversight of its supply chain in Leicester was ‘inadequate’, but said it did not deliberately benefit from poor working practices.