Boohoo shares fall again amid short seller attack

Shares of Manchester-based online fashion giant Boohoo Group plc fell another 4% on Wednesday after it published a stock exchange statement refuting an attack on the company by short seller ShadowFall.

Boohoo shares had fallen about 8% on Tuesday after allegations by the short seller that Boohoo “has provided a misleading impression of its cumulative free cash flow.”

ShadowFall also questioned profit figures for Boohoo brand PrettyLittleThing.

In its statement, Boohoo said: “Boohoo … notes the recent decline in its share price which the group understands is in response to a short-selling note issued on 26th May that contains allegations of disclosing information that could be deemed to be misleading.

“The group strongly refutes the allegations made in the research note …”