Debenhams Sells Sheffield Warehouse Assets to Primark for £90 Million

Corporate ActionEarnings
โดย Yahoo Finance·GB·Read original
Summary · why it matters

Debenhams Group has agreed to sell the automation assets at its Sheffield distribution center and reassign the associated lease to Primark Stores for £90 million in cash, a deal that should leave the company with negligible net debt by February 2027. Shares in Debenhams Group, formerly known as Boohoo Group, jumped around 8% on the news. The company received £76.5 million when the transaction completed, with the remaining £13.5 million due once it provides vacant possession early next year, all of which will strengthen a balance sheet that still carried £93.2 million of net debt at the end of February. Management now expects net debt to be negligible by the end of the current financial year in February 2027, an improvement from its previous target of getting leverage below one times adjusted EBITDA, and it expects annual depreciation to fall by around £12 million, interest expense to decline by at least £10 million and cash lease costs to drop by roughly £4 million. The group is simultaneously shifting fulfillment of the stocked goods it still carries to a global third-party logistics provider as part of a broader strategy to become a capital-light, stock-light and cost-light marketplace business, with marketplace activity eventually targeted to account for well over half of gross merchandise value. Group GMV returned to growth in the first quarter, rising 0.5%, before accelerating in the second quarter, while May alone delivered growth of roughly 8%.

Impact on stocks 2

Consumer Discretionary▲ · 1 stocks
BOOHOO GROUP PLC
DEBS
▲ PositiveCapitalrelevance

Debenhams (Boohoo) sells Sheffield automation assets and reassigns the lease to Primark for £90m cash, cutting net debt to negligible and lowering depreciation, interest and lease costs.

Artificial Intelligence▲ · 1 stocks

Off-coverage companies 1

Primark LimitedPrivate± Mixed
Capitalrelevance

Primark takes over the Sheffield distribution center lease and automation assets for £90m, a capacity/lease commitment whose net effect is unclear.

© 2026 MarketDXNews