Manchester-based fashion retailer Boohoo said it has rebranded as Debenhams Group — and that Phil Ellis will become group CFO and a member of the board, replacing Stephen Morana.
The group also published a trading update for the year to February 2025, saying gross merchandise value (GMV) pre returns was down 10% year on year “in spite of the very strong Debenhams performance.”
Revenue was £1.22 billion, down 16% year on year. The group said it expects to report adjusted EBITDA for FY25 of around £40 million.
Debenhams Group said it will now have five shopping destinations: Debenhams, Karen Millen, boohoo, MAN and PLT.
The Debenhams name dates back to 1778 when William Clark, a retail pioneer of the time, opened the UK’s first department store.
Boohoo said Debenhams has been successfully turned around since it was acquired out of administration in 2021.
“It has been repositioned as Britain’s online department store and is underpinned by a new marketplace led business model,” said Boohoo.
“Debenhams is growing rapidly. The business model is stock-lite and capital-lite. It is very profitable and highly cash generative.
“For our consumers, Debenhams is once again becoming their destination of choice. It is an iconic British heritage brand with huge brand awareness and significant consumer trust.
“For our partners, Debenhams is becoming a partner of choice, providing access to millions of consumers and driving strong growth for those selling on the Debenhams platform …
“The successful Debenhams turnaround, led by Dan Finley, Group Chief Executive Officer, provides the blueprint for the wider turnaround of the Group.
“The Debenhams marketplace-led business model, proprietary technology and lean operating model will be extended across the Group. This is critical to the turnaround of the youth brands and will help accelerate value creation in Karen Millen.
“Reflective of this major strategic change, the Group will go forward as Debenhams Group with immediate effect.
“Debenhams Group is sharply focused on maximising value for all shareholders. It will be at the forefront of global digital retail. It will be a leaner, faster and more technologically advanced business – utilising next-generation technology to maximum effect. The Group will be underpinned by a new ESG strategy.”
The group said that under the leadership of Finley, Debenhams is now fast-growing and highly profitable, generating GMV of £654m and net sales of £205m.
“Debenhams is also the home for the Group-owned labels, including Wallis, Burton, MissPap, Coast, Oasis, Dorothy Perkins and Warehouse, which have now been turned around and which combined have a c.7% EBITDA margin …” said the group.
“We see a clear runway to Debenhams becoming a business in the medium term with a £multi-billion GMV and an EBITDA margin on net sales of c.20%.”
On the CFO appointment and directorate change, the company said: “Reflective of this new strategy and the acceleration of the Group to the Debenhams led business and operating model, the Group announces that Phil Ellis will become Group CFO and a member of the board, replacing Stephen Morana with immediate effect.
“Phil is currently Finance Director of Debenhams and Managing Director of DebenhamsPay+. He has worked for the Group CEO, Dan Finley for 6+ years.
“Phil has extensive commercial finance experience in the retail industry and joined the Group in 2022 as Finance Director of Debenhams, immediately prior to that he held senior financial roles at JD Sports for 6 years, and 7 years at The Very Group.
“Stephen will oversee the finalisation of our FY25 results and completion of the audit, as part of an orderly and planned transition.”
Group CEO Finley said: “Debenhams is back. The iconic British heritage brand, bought out of administration, has been successfully turned around. Rebuilt for the future and transformed into Britain’s leading online department store.
“We’ve created a thriving community of brand partners with millions of consumers and we are growing rapidly. The most exciting thing is that we are just getting started. We see a clear path to scaling this into a £multibillion GMV business with strong profitability.
“The successful turnaround of Debenhams is our blueprint for the wider turnaround of the Group. The turnaround of our Youth Brands is underway and will take time. I have inherited significant challenges. I can see their future potential as they evolve into fashion-led marketplaces and adopt a leaner operating model
“We go forward as Debenhams Group. This is a defining moment in our journey, reflective of our new strategy, new leadership and new beginnings.
“Debenhams Group is sharply focused on maximising value for all shareholders. It will be at the forefront of global digital retail. It will be a leaner, faster and more technologically advanced business. I am confident our best days are ahead of us and I am excited for our future.
“Finally, I am delighted to promote Phil to CFO of Debenhams Group. We’ve worked closely together for 6 years. Phil has played a key role in the turnaround and growth of Debenhams.
“Phil’s retail, marketplace, financial services and turnaround experience are what we need. I’d like to thank Stephen for his significant contribution in a challenging period. The board and I wish him well for the future.”