The company announced that a new three-year credit facility would be led by investment firm TPG Angelo Gordon, a subsidiary of TPG which had helped take the Debenhams department store chain private in 2003.
The new £175m facility, which extends maturity to August 2028, replaces a £125m revolving credit facility that was up for expiration in October 2026. It “provides significantly enhanced financial flexibility, enabling the group to deliver its new multi-year turnaround strategy”, the group said in a statement.
Debenhams Group (or Boohoo Group plc) changed its corporate brand name earlier this year. It acquired the intellectual property rights of the former department store chain Debenhams in 2021 after the business had gone into administration.
TPG was part of a consortium that delisted Debenhams from the London Stock Exchange in 2003 before relisting it three years later. TPG Angelo Gordon will be one of a number of financing parties providing the facility.
“We have put in place a new facility, 12 months early, with strong lenders, that aligns and supports our new strategy – supercharging Debenhams and turning around our youth fashion brands. This follows a comprehensive and competitive review of the market,” said Debenhams Group chief executive Dan Finley.
The interest rate for the new facility is set at the Bank of England base rate plus 7.3%, which the company said reflected “the increased scale and flexibility.”
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