Manchester-based Boohoo Group, the fashion retailer that now trades as Debenhams, said it has “sold the automation in its Sheffield distribution centre and reassigned the lease to Primark Stores Limited for consideration of £90m in cash.”

The firm said: “The Debenhams Group turnaround continues at pace as it transitions to a marketplace-led business model that is capital-lite, stock-lite, cost-lite and cash generative. The Group’s ambition is for the marketplace to represent well over 50% of GMV.

“Consistent with this strategy, the Group announces that it has sold the automation in its Sheffield distribution centre and reassigned the lease to Primark Stores Limited for consideration of £90m in cash. £76.5m was received on completion and the remaining £13.5m will be received on vacant possession early next year.

“Concurrently, the Group is entering into an agreement with a global 3PL provider that will enable it to continue to fulfil its stocked product as efficiently as it does today and will allow the Group to scale its Delivered by Debenhams fulfilment proposition beyond fashion.

“The Transaction will result in the Company significantly deleveraging, and we now expect net debt to be negligible at our year-end (Feb ’27).

“Going forward, depreciation will reduce by c.£12m per annum (£3m of which related to a right-of-use asset), interest will reduce by at least £10m per annum and cash lease costs will reduce by c.£4m per annum.

“As previously announced, the Company returned to GMV growth in Q1 and the Board is pleased to report that growth accelerated in Q2. We will provide a H1 trading update on 17 September 2026.”

Debenhams CEO Dan Finley said: “The Debenhams Group turnaround continues at pace, and this transaction helps accelerate our progress.

“As a result of the disposal, net debt is now expected to be negligible at our year-end (Feb’27). We are also pleased to report that GMV growth has accelerated in Q2.”