Online fashion retailer Boohoo valued at £560m

FASHION website Boohoo.com has been valued at £560 million after a City fundraising delivered a major windfall for its founding family.
Picture: PAPicture: PA
Picture: PA

The Manchester-based business, which targets the 16 to 24 age range, has secured £300m from investors in a share placing secured ahead of a listing on London’s Alternative Investment Market next Friday.

Founded in 2006 by joint chief executives Mahmud Kamani and Carol Kane, Boohoo has 2.3 million active customers.

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Sales soared 70 per cent to £91.9m in the ten months to 31 December, while underlying earnings almost trebled to £10.1m.

Members of the Kamani family and other shareholders have received £240m of the placing proceeds, while some of the remainder will be used to implement a £6.5m improvement plan for its Burnley warehouse.

Boohoo is one of a number of companies making their debut on the London market, with others due to float in the next few days including Pets at Home and Poundland.

GRAEME EVANS