The chief executive of online fashion retailer Boohoo is set to depart after five years at the helm, as the company launches a strategic review and signs a new debt deal.

John Lyttle has informed Boohoo's board of his intention to step down from the top job. He will continue working with the leadership team in the coming months to ensure a smooth transition to his successor.

The announcement comes as Boohoo revealed it is undertaking a review of options for each of its divisions "to unlock and maximise shareholder value". This has sparked speculation about a potential break-up of the business.

Mahmud Kamani, Boohoo's group executive chairman, said: "The business has evolved over last few years and has an offer that is much wider than our original focus on young fashion. The time is now right to consider options with regard to corporate structure, with the aim of maximising shareholder value."

Lyttle commented on his departure: "Over the last five years I have been proud to lead the group and I believe there is huge potential in this business. I will continue to work with the board to drive value for all shareholders whilst a successor is found."

Kamani added: "I would like to personally thank John for the contribution he has made to the group. John has built a talented and inspiring leadership team who will ensure we are best positioned for sustainable growth."

The fast fashion retailer, which owns brands including PrettyLittleThing, Karen Millen and Debenhams, also reported a slump in sales for the six months to 31 August. Revenues dropped 15 per cent to £620 million, while gross merchandise value fell 7 per cent to £1.18 billion.

UK sales declined by 2 per cent, with steeper drops of 18 per cent in the US and 21 per cent in other international markets.

Despite the challenging trading environment, Boohoo expects an improved performance in the second half of its financial year, forecasting higher gross merchandise value and stronger adjusted earnings.

The company highlighted continued growth for its Debenhams online marketplace, with an additional 5,000 brands signed up during the period.

Alongside the trading update, Boohoo announced it has secured a new £222 million debt facility. This comprises a £125 million revolving credit facility maturing in October 2026 and a £97 million term loan repayable by August 2025.

Boohoo's shares have fallen 22 per cent so far in 2024, reflecting the challenges facing the online fashion sector.

---