Debenhams Group Plans £35m Equity Raise to Cut Debt and Accelerate Turnaround

boohoo group Plc ( (GB:DEBS) ) has issued an update.

Debenhams Group has confirmed plans for an equity fundraise of about £35 million to strengthen liquidity and optimise its capital structure, with directors intending to participate at 20 pence per share. The company is in advanced talks with its lending syndicate on covenant amendments linked to the raise, aiming to cut its net debt to Adjusted EBITDA ratio to around 2x in FY27 and below 1x by the end of that year.

Management reiterated guidance for £50 million of Adjusted EBITDA in FY26 and double-digit growth in FY27, supported by improving gross merchandise value trends and ongoing cost reductions. All brands are now profitable on an Adjusted EBITDA basis, and the group is accelerating its shift to an asset-lite model, reducing lease, capex and interest costs while exploring deleveraging options such as IP licensing, supply-chain partnerships and non-core asset sales to enhance cash generation and financial flexibility.

The most recent analyst rating on (GB:DEBS) stock is a Hold with a £22.00 price target. To see the full list of analyst forecasts on boohoo group Plc stock, see the GB:DEBS Stock Forecast page.

Spark’s Take on GB:DEBS Stock

According to Spark, TipRanks’ AI Analyst, GB:DEBS is a Neutral.

The overall stock score is primarily impacted by the company’s poor financial performance and concerning valuation metrics. While technical analysis shows some short-term bullish momentum, the overbought indicators suggest caution. Positive corporate events provide some optimism, but the financial distress remains a significant risk.

To see Spark’s full report on GB:DEBS stock, click here.

More about boohoo group Plc

Debenhams Group, trading as boohoo group plc, is a leading UK-based online retail platform focused on fashion, home and beauty. It serves millions of customers through digital brands including Debenhams, boohoo, PLT, MAN and Karen Millen, and is transitioning towards an increasingly asset-lite, marketplace-led business model.

Average Trading Volume: 6,987,780

Technical Sentiment Signal: Sell

Current Market Cap: £289.7M

Learn more about DEBS stock on TipRanks’ Stock Analysis page.