Creditors squeeze Boohoo's finances as sales fall

Boohoo, founded by Mahmoud Kamani, has lost more than 90% of its share value. Photo: Gerrit Clark/Getty Images

It comes as Boohoo, co-founded by chairman Mahmoud Kamani, faces a series of challenges that have seen its share price fall more than 90% from its peak pandemic. Aim-listed Boohoo was valued at £4 billion but is now worth just £460 million.

Boohoo's business is now threatened by rising Chinese giant Shein, as well as the cost of living crisis and inflation in his country. supply chain. Last month, the company issued a brief statement that «trading remains in line with market expectations.»

The company forecast revenue would fall by as much as 17%. In its interim report in October, Boohoo's half-year loss widened to £21.2m, up from £11.8m a year earlier.

Boohoo plunged into chaos in 2020 after being hit by a string of accusations of modern slavery.

A damning review by solicitor Alison Levitt later substantiated these claims as she found that «allegations of poor working conditions and low pay rates in many Leicester factories are not only well substantiated, but substantially true .

Boohoo said it would not tolerate “any instances of non-compliance, particularly in relation to the treatment of workers”, and said it had terminated relationships with suppliers found to have broken rules.