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Fast fashion retailer Boohoo (BOO.L) is rebranding as Debenhams amid the company’s bitter rivalry with Mike Ashley’s Frasers Group (FRAS.L).
The name change forms part of an attempt to revive the retailer’s ailing fortunes, as bosses hope the online department store will become the “driving force of the business” and “lead the group recovery”.
After buying Debenhams out of administration for £55m less than four years ago, Boohoo said the company is now on a stable footing and generated net sales of £205m in the 12 months to February.
Boohoo added: “Debenhams is growing rapidly ... It is very profitable and highly cash generative.”
However, the rebrand comes amid escalating tensions between Boohoo and Mr Ashley, who was previously wiped out in the Debenhams administration in 2020 after he had a last-ditch rescue offer rejected.
The Sports Direct founder has since turned his attention to other retailers such as Boohoo, recently building up a 29pc stake to become the company’s single-largest shareholder.
He has used his influence to criticise Boohoo’s performance, claiming last year that management had created a “catastrophic mess” as he unsuccessfully attempted to become chief executive.
Boohoo, which posted losses of £160m last year, hit back by claiming the Frasers tycoon had an “ulterior motive” and suggested he could be trying to derail the company’s turnaround plan to snap up its assets at a reduced price.
This led to Boohoo investors overwhelmingly voting against plans to appoint Mr Ashley to the board last December.
Dan Finley, the chief executive of Boohoo, said he believed the Debenhams rebrand would help “create value for all our shareholders”.
He said Debenhams had “a whole host of competitors, including Frasers”, although he added that it differed from its rivals as it did not have high street stores.
It also comes at a time when Boohoo’s younger brands, including Boohoo and PrettyLittleThing, face mounting competition from Shein, the Chinese fast fashion rival.
Figures last year revealed that Shein had overtaken Boohoo in terms of UK sales.
Mr Finley, who was named Boohoo chief executive last November, said it had been tougher for these brands of late. But he hopes the latest rebrand will help drive substantial change across the business.