Online fashion giant takes over PrettyLittleThing
By Sarah Wood | 29th May 2020
Two of the internet's biggest fashion retailers have become one, with Boohoo now entirely owning PrettyLittleThing.
Boohoo acquired a minority 34 per cent stake in the company, for an initial cost of £269.8 million to complete the takeover, as reported by The Guardian.
Boohoo denied allegations by activist investor ShadowFall that the total cost of buying out PrettyLittleThing could reach £1 billion. ShadowFall also alleged that the retailer had overstated its free cash flow by 65 per cent.
Boohoo said its cash payment for PrettyLittleThing was funded by £240.7 million of net cash it had on its balance sheet in February.
PrettyLittleThing was founded in 2012 by Umar Kamani, who is the son of Boohoo chair and co-founder Mahmud Kamani. It generates over half a billion pounds in sales annually.
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