Boohoo's Sheffield Center Transfer to Primark to Benefit Both Parties
Dow Jones09-10
0749 GMT - Boohoo's disposal of its Sheffield center, which will now be leased by Primark, seems positive for both companies, analysts at RBC Capital Markets write in a research note. Boohoo, which trades under the Debenhams Group name, said it sold its Sheffield distribution centre and reassigned the lease to Primark for 90 million pounds in cash. The disposal should strengthen Boohoo's balance sheet, analysts Richard Chamberlain and Manjari Dhar say. "We expect Primark to use this additional capacity to strengthen its U.K. online capability, including home delivery," they add. As a result of the disposal, Boohoo now expects net debt to be negligible at the end of fiscal 2027. Shares are up 9.4%.
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