Boohoo ditches its name after a 21% sales slump, hoping Debenhams’ legacy can save it from collapse.

Once a dominant force in fast fashion, Boohoo has been forced to erase its identity, rebranding as Debenhams Group after its youth-focused labels crumbled under fierce competition.

The online retailer, which soared during the pandemic, has seen its fortunes sink dramatically. Sales for Boohoo, MAN, and Pretty Little Thing have plummeted by 21%, falling to £947 million, as rivals like Shein and Temu devour the market. In a bid to survive, the company is clinging to Debenhams—a 246-year-old British department store brand it salvaged from collapse in 2021.

CEO Dan Finley acknowledged the company had “lost its way” and admitted major missteps, including cutting marketing investments at a time when competitors were aggressively expanding. Boohoo had banked on Debenhams’ revival as an online platform, and with its younger brands faltering, it is now fully adopting the Debenhams name to turn its luck around.

“Debenhams is back,” Finley declared. “We rebuilt it from administration, transforming it into Britain’s leading online department store.”

However, the figures paint a grim picture. Boohoo’s revenue has dropped 16% to £1.2 billion, and its young fashion labels are now under review. The company has already cut £50 million in costs—firing 200 staff in Manchester, shutting its US warehouse, and writing off £40 million in unsold stock.

Boohoo had been expected to break up its struggling empire, potentially selling Karen Millen and Debenhams. Instead, it is doubling down on its historic acquisition. The Debenhams name now represents brands like Dorothy Perkins, Oasis, Wallis, and Warehouse, which have been stabilised under Boohoo’s ownership.

Yet, uncertainty looms. Investors remain sceptical, and Boohoo’s stock—already down 20% since January—fell another 4% on Tuesday. Meanwhile, billionaire Mike Ashley, whose Frasers Group owns a 27% stake, continues his battle for influence over the company, despite having been blocked from its board in December.

With its future still in flux, Boohoo’s drastic rebranding is a gamble—one that may either rescue it from disaster or mark the final chapter of its rise and fall.