boohoo has signed a new £222m debt financing agreement that it said is "appropriate" for the next phase of the group’s development.

The move comes as the firm’s chief executive officer, John Lyttle, said he is set to stand down from the role.

The fashion retail firm’s new financing deal comprises a £125m revolving credit facility that runs to October 2026 and a £97m term loan that is repayable by August 2025.

boohoo said that the board believes that the group "remains fundamentally undervalued" following the developments of recent years, which has created a business with five core brands.

These include Debenhams, PrettyLittleThing, boohoo, boohooMan and Karen Millen.

The firm stated that it has already "executed on a series of decisive and robust strategic initiatives to drive operational efficiencies and optimise the cost base" over the last 18 months.

It added that with "substantial strategic progress" in the Debenhams and Karen Millen brands, the board "strongly believes there is potential to unlock shareholder value" and explore options.

This statement comes as its revenue dropped by 15% in the first half of its financial year.

Group executive chairman, Mahmud Kamani, said: "The board is focused on ensuring it takes the right steps to drive boohoo Group in the interest of all its stakeholders. We are delighted to have agreed a new lending facility which shows the support of our existing banks and their confidence in the group.

"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.

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

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