Share plunge sparks talk Boohoo may go private

BOOHOO co-founder Mahmud Kamani recently excitedly posted on social media about the birth of his first grandchild – but his business baby is said to be on his mind too.

City gossips claim the online retailer’s chairman is eyeing a deal to take the firm private. He set up the business in 2006 and oversaw its growth into a fast fashion powerhouse.

Less than two years ago, the stock was at a record high of £4.13 as high street rivals closed due to Covid.

Investor concerns over governance and labour conditions at its Leicester suppliers have been compounded by a pre-Christmas profit warning. The stock is now at 84p, valuing Boohoo at £1billion.

The plunge has led to suggestions Kamani is thinking about teaming up with a private equity firm.

Sources close to the family refuted the rumours. But another source said: ‘Mahmud has been frustrated that investors have focused on the governance concerns rather than the fundamentals of the business.’ Boohoo declined to comment.