Dan Coatsworth, head of markets at AJ Bell, said: “Boohoo’s parent company is to capitalise on the sharp improvement in its share price since November and issue new stock to raise £35 million to improve its balance sheet.
“The share price has more than doubled in the past three months on positive signs of a turnaround in the retailer’s fortunes.
“The new shares will be issued at an 11 per cent discount to last night’s closing price, which is enough of a sweetener to get investors to part with their cash without giving away too much.
“Getting debt under control is a gamechanger for attracting a wider pool of investors and convincing the market that the company has a solid future.
“The company is certainly making the right noises regarding its comeback, but success is not a given when you consider the highly competitive nature of fashion and beauty retail.
“There is still a lot of work to be done.
“Debenhams needs to keep cutting costs and find a way to grow sales across the business without resorting to massive discounting.”
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