It has been reported over the weekend that there have been some ‘heavy’ discussions about the ongoing crisis within the boohoo Group (LON:BOO).
Biggest shareholder in the online fashions empire is Mike Ashley’s Frasers Group (LON:FRAS), far outnumbering the holding of co-founders Mahmud Kumani and Carol Kane.
And now, it is said, Philip Green, the former boss of the Top Shop retail chain, is getting involved in the discussions between the main players on just what to do with the boohoo debts and increased losses.
Should the company sell off various of its various brand names and assets, with so many well-known concerns probably able to attract buyers or even shareholders in demerged operations.
The group has a host of such interests being considered for ‘hiving off’ – like PrettyLittleThing, BoohooMan, Karen Millen, and Debenhams – could well be the answer to settling the boohoo debt crisis.
But will the UK investing public be prepared to gamble any more of its funds on the Kumani empire?
Especially now, like others within the online and retail fashion sector, suffering lost sales to the mega-sized Shein Group, which has been undercutting prices across the retail board with its women’s, kids, and men’s latest fashions.
Shein, which sells several times more than those of ASOS and boohoo put together, has its official headquarters is in Singapore, while the majority of its staff and vendors remain in mainland China, including a network of more than 3,000 suppliers in Guangzhou, from where designs can be made up and delivered within a fortnight.
The shares of the boohoo Group, where just under 5% of its equity is under short positions, are currently trading at around the 29.75p level, valuing it at some £377m.
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