BooHoo.com has reasons to cheer
The owners of a flourishing British online fashion retailer have raised £80m through share sales in order to expand their business.
Boohoo.com targets young people on a budget by pricing jeans from as a low as £6 and dresses from £4.
Sales doubled to £120m in the three months leading up to the end of May and now joint CEO Mahmud Kamani, along with co-founder Carol Kane and siblings Rabia Kumani and Nurez Kumani, wants to revolutionise the company's storage solution with a 'supersite' warehouse.
To achieve this, the Kamanis have sold 36.6m shares while placing 22.7m new shares priced at 220p, with their business also including the popular brands Pretty Little Thing and Nasty Gal.
The three-year 'supersite' project is expected to cost £150m and at the centre of it will be an automated distribution centre that is set to increase annual sales capacity to £2bn.
“The combination of broadening product ranges, strong brand image, competitive prices and good customer service continues to drive sales momentum," said joint CEOs Kamani and Kane.
"The inclusion of our new brands is proving the potential of our multi-brand strategy in delivering strong group revenue growth."