- Boohoo takes 66% stake in Pretty Little Thing for £3.3m
- Pretty Little Thing owned by Boohoo founder Mahmud Kamani’s son
- Fashion etailer is expanding rapidly overseas
Boohoo has acquired a majority stake in fellow fashion etailer Pretty Little Thing for £3.3m.
Pretty Little Thing was set up in 2012 by Boohoo founder Mahmud Kamani’s son, Umar, and caters for young, fashion-conscious shoppers on a budget.
Peter Williams, Boohoo’s chairman, said Pretty Little Thing is a “natural fit” for the etailer.
“We are delighted to add this fast growing, international business to the group,” he added. “We believe this is an excellent opportunity to extend the group’s overall customer appeal through two distinct, complementary brands while further enhancing the group’s strong growth trajectory.”
Pretty Little Thing, which has around 140 employees, reported sales of £30m last year. It launched in the US in July.
Boohoo said the remaining 34% stake of Pretty Little Thing will be used to ”incentivise” Umar Kamani and the etailer’s senior management team.
Umar Kamani said: ”As part of the Boohoo group, we will continue to build on our strong brand positioning and we are excited by the prospect of continuing to anticipate and set trends.”
The news came as Boohoo raised its estimate for full-year sales growth to between 38% and 42%.
Boohoo said trading was “strong” across Black Friday and peak season trading “continues to be encouraging”.