Summary
Boohoo Group, which operates from Manchester as the Debenhams Group, has completed the sale of its Sheffield distribution centre automation and lease to Primark Stores Limited for £90m cash. The group received £76.5m on completion, with the remaining £13.5m due on vacant possession in early 2027.
The transaction supports Boohoo's strategic shift away from asset-heavy operations towards a marketplace model that aims to represent over 50% of gross merchandise value. The company will partner with a third-party logistics provider to continue fulfilling stocked products and scale its Delivered by Debenhams service.
Boohoo expects the deal to significantly strengthen its financial position, with net debt forecast to be negligible at year-end February 2027. Annual depreciation will fall by £12m, interest costs by at least £10m, and cash lease costs by £4m, whilst GMV growth accelerated in the second quarter.
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Common questions
- What is this article about?
- Manchester-based Boohoo has sold its Sheffield distribution centre and automation to Primark for £90m in cash as part of its shift to a marketplace-led, capital-light business model. The sale will reduce net debt to negligible levels by February 2027 and cut annual depreciation by £12m.
- When was this published?
- This article was published on 10 September 2026.
- Who published this article?
- This article was published by TheBusinessDesk.