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The change in RCF lender could be part of the plan to dispose of Burnley by removing charge.

The bizarre thing is that if Frasers were to bid 30p a share, all the analysts would say it fundamentally undervalues the business on a sum-of-the-parts.

I don’t know Burnley’s value but Debs has a market cap of £180m and an EV of probably £280m.

There is value here.

Https://www.constructionenquirer.com/2017/06/09/fashion-giant-plans-150m-super-warehouse/

I know diddly about real estate but my 2min research shows that a DC goes for £54 sq ft in Burnley. Boohoo site is 2million square feet. Does £100m plus sound right?

https://www.zoopla.co.uk/for-sale/commercial/details/70631305/?search_identifier=4418db59a29fcfce977d38116afc4dfb701f545a767c9dede777c239d22f0da0

https://www.costar.com/article/1939486017/online-retailer-to-exit-2-million-square-foot-burnley-distribution-campus

Realistically, statutory redundancy is fairly low. Let’s say £5k on average per employee. Let assume 1200 laid off, then that’s a cash cost of £6m.

I suspect my numbers are off but happy for other insights.

Burnley staff (for whom I have sympathy) are currently going through ‘your job is at risk’ stage. Once regulatory requirements have past, Dan can announce the annualised cost savings.

I think the sale proceeds from Burnley covers the closure costs in terms of cash.

We just need a PLT disposal before fiscal year end. Then hopefully Debs would be in a much better position from next March to deliver detailed guidance and put forward the investment thesis.

The bear argument is that Boo generates negative cash flow.

Now let's assume:

1) it closes Burnely (right size cost base) and uses the more efficient Sheffield, and

2) it sells a stake in PLT in order to get to net cash thus not having high interest payments.

Would the new Group be cash flow positive?

These two major strategic steps (and yes I call this a credible plan) could be key to turning the new Group into a cash generative business. The risk then is whether it can sort out Youth Brand. This may be sorted in next Budget if deminimis is scrapped.

There is the basis for an investment thesis here. We just need Dan to put numbers to it and to get on with it.

I actually think the RCF will be used up quickly. Inventories seemed too low if you ask me. The refund issue and suppliers not getting paid. Cash flow was obviously tight during 1H26.

Youth Brands are not market place. It cannot have sales if it doesnt own stock. I think £50m wouldnt touch the sides as it goes into Golden Quarter. However, this is the correct business strategy.

The lqiuidity will show up in 1H trading statement. Then Boo will now build inventory and sell it over Christmas so that it is back in a strong position by end 2H.

In a nutshell, liquidity is probably rapidly disappearing but we wont see it as they sell inventory before 2H.

The Full Year Results presentation was a disaster.

Trying to deliver a media video. The CFO came across terrible. Analysts were clearly frustrated by being unable to asked detailed questions for their financial models. Every slide delivered by Dan was full of hollow statements such as "capital light", "powerhouse". It was an embarrassing display and certainly not what i expect from a CEO earning £4.5m.

The issue is with poor comms. Boohoo is toxic to institutional investors who do not want any AIM companies, let alone one led by Kamani. That is why share price is drifting down on low volumes as it is a plaything for day traders; and mgmt are too inept to take control of narrative.

Imagine you are a sell-side analyst who covers Boo. Your instincts may tell you that this is fundamentally undervalued. However, you first have to go through your peer group (fellow analysts) to upgrade rating from Neutral to Buy. The first questions they will ask is what is the guidance for FY26? What is the latest trading statement? As I say, self-inflicted poor comms.

It is my opinion that talk that this company is going into administration, or is somehow going to be stolen, are extreme.

The company has optionality with PLT to repair its balance sheet.

The closure of Burnley is credible to getting this to cash flow neutral.

The guidance for FY26 is for continued strong growth at Debenhams.

We know that Boo got a £50m injection in liquidity from the RCF only two weeks ago. Yes this may have been swallowed up by inventory building for the golden quarter but that is normal for retail.

What investors want to hear which is realistic:

"We want to thank Kamani who has decided to step down"

"The business review is now complete"

"We have sold a strategic stake in PLT and are pleased to announce we are entering in a JV with"

" Following the sale, we now have a net cash position"

" We expect FY26 revenues to grow.."

Cashflow-lite

My personal favourite: "I want to be to retail what Spotify is to music"

Confirmed Dropped Slogans:

"upcoming Capital Markets Day"

"Credible Plan"

"highly profitable"

"labels"

"US Warehouse"

"strategic investment in Revolution Beauty"

"positive free cash flow"

"Transition year"

"return to growth"

Pending to be dropped:

"Powerhouse"

"Releasing value for ALL shareholders"

Safe:

"Medium term EBITDA margin"

"marketplace"

"Rightsize"

By all accounts Bon-Scott, the shorts are about to get mowed down by the Debenhams juggernaut.

It's a powerhouse don't you know?

Bon Scott,

"Increasing value for all shareholders" can mean many things. It can be Dan having cosy CEO chats with junior staff every other Friday. Or those who are working to a project deadline getting free Dominoes pizza delivered for their lunch. It's not about KPIs or cash flow or like-for-like sales growth.

It is a bit passe to think shareholder value means an increase in the share price.

"This is just a disaster...12.8p"

Maybe the Head of the Remuneration Committee, Iain McDonald, can step up at the AGM and give us an explanation how the management team has delivered value for all shareholders and deserve a 7-figure bonus.

Incidentally, shareholders do not get the opportunity to elect Iain McDonald this year as Debs Group has decided not all directors needs to seek re-election every year. That's only for proper companies.

If Dan did not accept the job as Group CEO in November, then come appraisal time with the theoretical Group CEO (e.g., Ashley), then he may have got a generous pay award this year come bonus time.

However, Dan became Group CEO midway through the fiscal year. The remuneration committee are now the 'line manager' that determines the pay award. They need to take into consideration both but give greater focus to his contribution since November. Given the halving in share price, then I think on balance a seven figure pay award for the year is wrong for an AIM listed CEO.

I have no problem with giving Dan loads of stock options, just not below 34p. His prize this year for running Debenhams well is the promotion to Group CEO - not a seven figure pay packet.

I believe in watermarks for setting Dan's share awards. Any exercise price should not be below the prior closing share price to when he started his role on 1 November 2024. Simples.