Asos competitor Boohoo mulls sale

The Manchester-based company has seen strong growth since it was founded seven years ago

Click to follow
The Independent Online

The online clothing retailer Boohoo is considering a sale of the business, following strong growth since it was founded seven years ago.

Boohoo has hired the private equity and advisory firm Zeus Capital to explore its strategic options, including a possible sale.

The Manchester-based company competes with the internet clothing giant Asos, although the latter’s revenues currently dwarf those of Boohoo.

Zeus Capital’s advisory arm is understood to have already sounded out potential investors about their interest in acquiring Boohoo or buying a minority stake in the business.

Boohoo grew its pre-tax profits by 79 per cent to £248,790 over the year to 29 February 2012, according to its latest accounts, on sales up strongly to £29m.

The retailer is currently advertising heavily on London’s Underground and is thought to have grown its bottom line strongly for the financial year just ended.

Boohoo’s chief executive Mahmud Kamani set up the business with co-chief executive Carol Kane in 2006, and the online specialist employs about 500 people.

Sources have indicated that Zeus Capital’s private equity arm is also an investor in Boohoo but this could not be verified. Both companies declined to comment.