British online fashion retailer Boohoo has announced it is rebranding as Debenhams Group, marking a significant strategic shift as it pivots to a marketplace-led business model.

The company revealed on Tuesday that the Debenhams brand, which it acquired out of administration in 2021, has been successfully turned around and is now the "majority contributor to Group profitability" with what it describes as a "stock-lite, capital-lite and highly cash generative business model."

Group chief executive officer Dan Finley, who led the transformation of Debenhams, said: "Debenhams is back. The iconic British heritage brand, bought out of administration, has been successfully turned around. Rebuilt for the future and transformed into Britain's leading online department store."

The company's total sales fell 16 per cent to £1.22 billion in the year to February 2025, with the group expecting to report adjusted earnings before interest, tax, depreciation and amortisation of around £40 million for the period.

Finley, who was appointed after the departure of previous chief executive John Lyttle last October, stated that the successful Debenhams turnaround would serve as "our blueprint for the wider turnaround of the Group."

The company's youth brands, including PrettyLittleThing, Boohoo and MAN, saw a 21 per cent drop in sales year-on-year. The group acknowledged the turnaround of these brands "will take time" but expressed confidence in their "future potential as they evolve into fashion-led marketplaces."

Debenhams Group has also appointed Phil Ellis, the current finance director of Debenhams, as its new chief financial officer, replacing Stephen Morana with immediate effect.

"We've created a thriving community of brand partners with millions of consumers and we are growing rapidly," added Finley. "We see a clear path to scaling this into a multibillion-pound GMV business with strong profitability."

Once boosted by the pandemic's online shopping surge, the retailer has recently struggled with supply chain issues, rising returns, weak consumer demand and competition from rivals like Shein and Temu. In recent months, it has closed its US distribution centre, raised equity, sold its London office, and cut £50 million in annual headcount costs.

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