Debenhams Reverses Course: Pretty Little Thing Brand to Remain After Profitability Surge
In a significant strategic shift, online fashion giant Debenhams has announced it will retain ownership of the Pretty Little Thing brand, following a notable recovery in the fast-fashion label's performance. The decision marks a reversal from earlier plans to sell the brand as part of a broader business restructuring effort.
From Sale Consideration to Strategic Retention
The retailer, which underwent a rebranding from Boohoo Group in March 2025, had initially contemplated divesting Pretty Little Thing in August as it sought to streamline its operations. This potential sale would have involved closing the brand's distribution centre in Burnley, resulting in the loss of over 1,200 jobs. However, company executives have now halted these plans, expressing particular satisfaction with the pace and scale of PLT's financial turnaround.
In its trading update, the company stated: "The Board had previously held the brand as an asset for sale. Given the success we are seeing with the turnaround, the momentum it is building and the substantial opportunity ahead as a fashion-led marketplace, the brand will be retained."
Financial Performance and Strategic Context
The decision comes against a backdrop of mixed financial results. In its final results released in August, the group reported a 10 per cent decline in overall sales, with its youth-focused brands—Boohoo, Boohoo Man, and Pretty Little Thing—experiencing the most significant impact. Sales for these brands fell by more than a fifth to £1.5 billion.
Nevertheless, the company now anticipates full-year profit before tax to reach £50 million, exceeding market expectations. This improved profitability is attributed to the sustained momentum of the Debenhams brand alongside a discernible improvement in the performance of its previously struggling youth brands.
Broader Business Transformation
While retaining Pretty Little Thing, Debenhams continues to pursue its strategy of shedding non-core assets. The company is advancing sales and exploring licensing opportunities as part of its plan to reduce net debt over the next twelve months.
Furthermore, the group has accelerated its transformation plan, which aims to transition the former department store retailer into a stock-light, capital-light online marketplace. This new model will focus particularly on premium beauty products and fashion accessories.
Analyst Perspectives
Industry analysts have responded positively to the developments. Panmure Liberum analysts Wayne Brown and Anubhav Molhotra noted that the company's "earnings momentum is nicely positive" and that Pretty Little Thing is now positioned to become "a centre piece of the fashion marketplace model."
The retention of Pretty Little Thing follows its acquisition history. Five years prior, Boohoo purchased the remaining 34 per cent stake in the business from Umar Kamani—son of Boohoo's executive chair Mahmud Kamani—and business partner Paul Papworth for more than £260 million.
