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I would have thought that the EBITDa based on revenues would have been significant higher?

It has 100% gross margin. It is simply connecting consumer to supplier. Surely if the double digit EBITDA target is based on sales rather than GMV then it would be much higher?

Hexam,

I think your 0.25-0.5x GMV for Debs is too low. Its GMV grew 170% in last six months and it is projected to be a double digit EBITDA margin business.

I think we should be looking three years ahead when valuing it and I anticipate it being a £1bn GMV business if it can continue these growth rates. If it gets 10% EBItDa in 3yrs, that is £100m in EBITDA. A assuming no debt, a 7x 2028 EV/EBITDA multiple would give it a £700m valuation. That is 2x trailing GmV.

Resistance- if it can grow at the current run rate, then 1-2x GMV is certainly reasonable.

My question is does Debs have enough scale to be spun off as its own listed entity. Maybe chuck in Arcadia brands and Karen Millen.

Kamani wants Youth Brands. Ashley wants Debs. We can remain shareholders in both if we choose.

New Telegraph story. A Middle Eastern buyer has walked away from £60m Soho office purchase.

I agree with your sentiment HappyInvestor. I’ve lost too much money. However I am in a magnanimous mood regarding second meeting given recent events.

If Frasers doesn’t get in BoD, I’m definitely voting off Kamani.

I will wait until after vote. Kamani may still be useful.

Ocean- apologies if I took your comments out of context.

It is my view though that both Ashley and Kamani would be assets to the BoD. And let’s give Dan a chance. I was impressed with his video and see real potential in him.

Ocean - I agree, why wouldn’t you want one of the UK’s best retailers on the Boardroom table? Particularly when incumbent BoD is struggling.

Does anyone reckon Camelot and Frasers are secretly concert parties?

Camelot is on Board of ASOS.

If your logic is to vote against Ashley to give Dan freedom to manage business, then by same logic you should vote off Kamani.

A part of me wants to vote off Kamani. I think the business is bigger than him and he has not been a good steward in recent years. Yes he founded it, but that doesn’t give him a free pass into perpetuity.

I sense the sensible thing is to have both Kamani and Ashley on board to bring balance. They will ultimately learn to work together and when they reach this point, Boohoo will grow.

*develop Debs to its full potential.

Ashley was initially concerned about disposal of Debenhams. This was originally alluded to although BoD have now indicated that its “credible plan” is to dispose of non-core assets.

Frasers said that they met with Dan and agreed the potential value in Debenhams. Ashley can help Dan develop Fraser’s to its full potential.

If Frasers are forced to go to 51%, then we should be worried about self interest.

I remind you that Kamani was Executive Chairman. He is culpable. We cannot scapegoat JL in its entirety. I sense JL was responsible for US strategy (I don’t actually know).

I’m confused why anyone believes that Kamani will let Dan have autonomy to manage business, but Ashley won’t. Ashley may be able to help Dan?

I think Big Mike will have to bid.

Let’s assume he gets on 🤞BoD

Let’s assume Kamani gets kicked off.

Kamani can requisition another meeting.

Mike needs 51%.

I’ve never seen anything like this proxy battle. 🍿

Extraordinary

Ultimately we just want the best executive team and Board.

I want both Kamani and Ashley on BoD.

Frasers would be wise to publicly back Dan now. He looks the right man for the CEO job.

Ignore my previous post.

It is sloppy journalism.

They are quoting the Board but saying it’s ISS.

I read this article which gave more depth on what ISS said. I was surprised how strongly worded it was.

https://businesscloud.co.uk/news/why-do-frasers-want-to-install-insolvency-expert-at-boohoo/

1) It says Boohoo has a credible plan. Has Boohoo told ISS its credible plan or is it just repeating the circular?

2) If ISS and Glass have been made insiders and told credible plan, then have Schroders and Camelot also been told?

3) If there is a credible plan to unlock shareholder value, why not tell us?

4) Or at the very least, give us a date for the Capital Markets Day?

I just watch the CEO video. Impressive delivery. We just need the numbers. Medium term targets won’t cut it.

https://www.retailgazette.co.uk/blog/2024/12/boohoo-debenhams-outvalue/