Debenhams secures 40 million pounds in oversubscribed fundraise

Online retailer Boohoo, now trading as Debenhams, has successfully completed an upsized and significantly oversubscribed fundraise, generating gross proceeds of approximately 40 million pounds (54.04 million dollars).

The capital raise, upscaled from an original target of 35 million pounds due to strong investor demand, consisted of a placing for 200,000,000 new ordinary shares and a subscription for 22,222,222 new ordinary shares. All shares were issued at 18 pence each, representing a 5 percent discount to the closing price on February 17, 2026. Group chief executive officer Dan Finley stated that the successful outcome provides the group with "greater financial flexibility to execute our turnaround strategy" and delivers an improved capital structure.

The fundraising saw significant participation from company directors and major stakeholders, categorized as related party transactions. Finley, co-founder Mahmud Kamani, and non-executive director Iain McDonald collectively subscribed for over 61.90 million new shares, with Kamani contributing 8 million pounds and McDonald investing 3 million pounds.

Furthermore, Frasers Group, which holds a stake of more than 10 percent in the company, agreed to subscribe for approximately 59.68 million new shares. The independent directors of the company, after consulting with nominated adviser Zeus Capital Limited, deemed the terms of these participations fair and reasonable for all shareholders.

Concurrent with the fundraising results, Debenhams Group announced that Iain McDonald is stepping down from his role as non-executive director and chair of the remuneration committee with immediate effect. This departure was initiated to facilitate the participation of certain funds managed by McDonald in the fundraise. McDonald, who served on the board for nine years, expressed his continued confidence in the business, noting that the current market valuation "undervalues its future prospects" following recent efforts to transform the cost base and business model.

Dealings in the new ordinary shares are expected to commence on AIM at 8 a.m. on February 23, 2026.