Debenhams Group, formerly known as Boohoo, announced the completion of a new three-year debt facility providing access to funding of up to £175 million.

The new facility is provided by a number of financing parties, led by TPG Angelo Gordon. 

Debenhams said the interest rate is set at the Bank of England base rate plus 7.3% “reflecting the increased scale and flexibility of the facility.”

The firm added: “The new facility, which extends maturity to August 2028, replaces the Group’s previous £125 million revolving credit facility originally due to mature in October 2026.

“The new facility, executed by the new management team more than 12 months ahead of the original maturity date, provides significantly enhanced financial flexibility, enabling the Group to deliver its new multi-year turnaround strategy.”

Debenhams Group CEO Dan Finley said: “We have put in place a new facility, 12 months early, with strong lenders, that aligns and supports our new strategy – supercharging Debenhams and turning around our Youth fashion brands.

“This follows a comprehensive and competitive review of the market.”

The group’s brands include Debenhams, Karen Millen, boohoo, MAN and PLT.