Boohoo and Debenhams owner raises £35m, risking Mike Ashley clash

Boohoo and Debenhams owner, Debenhams, is raising £35 million from shareholders to reduce debt and fund its turnaround plan, which includes cost-cutting and operating Debenhams as an online marketplace. The fundraise, occurring less than 18 months after a previous £39 million raise, comes as the company faces competition from rivals. While institutional shareholders have indicated support, it is unclear if Frasers Group, Debenhams' largest shareholder with nearly a 30% stake, will participate. This move could reignite conflict with Frasers Group founder Mike Ashley, who has previously criticized Debenhams' plans and been blocked from joining the board. Debenhams aims to deliver £50 million in underlying group profits for the year ending in February and is considering further asset disposals to reduce debt.

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