Boohoo-owner scraps plans to unload PrettyLittleThing model as turnaround efforts repay

The owner of Boohoo and Debenhams has scrapped plans to sell off the PrettyLittleThing brand as its turnaround efforts pay off. 

The Debenhams Group – renamed last year from Boohoo – now expects profits of £50million for the year to February 28, up from previous guidance for around £45million. 

It was ‘particularly pleased’ with the revival at PrettyLittleThing and its improvement in profitability. 

Given the success, the brand will now be retained, it said, though it will look at selling other non-core parts of the business to reduce debts. 

The group narrowed losses in its first half to £2.5million for the six months to August 31, from a £130million loss a year earlier.

But it said it would continue to look at selling other non-core parts of the business to reduce debts over the coming year.

Results: The Debenhams Group said it was ‘particularly pleased’ with the revival plan at PrettyLittleThing and its improvement in profitability

Chief executive Dan Finley is leading a major turnaround after losses and flagging sales.

In August last year, the business said it was considering the sale of its PrettyLittleThing brand, having already secured around £50million in annual savings and cut its staff headcount by 30 per cent.

It said the improvement was driven by the online Debenhams brand, where gross merchandise value and earnings grew over the half-year.