Online retailer Boohoo Group is closing in on a sale of its headquarters in London's Soho for in excess of £60 million, CoStar News understands.
Market sources this week said the group is finalising the sale with a party understood to be private investor the Bridge Group.
Boohoo bought the building in 2021 for £72 million as it rode the wave of soaring demand for online retailers during the pandemic.
Drapers first reported earlier this year that the fashion group was in talks with prospective buyers for the 43,963-square-foot office block at 10 Great Pulteney Street via a sale-and-leaseback. It is understood to be considering offers in excess of £60 million.
The five-storey office block houses around 500 employees across Boohoo brands such as Burton, Coast, Debenhams, Dorothy Perkins, Karen Millen, Oasis and Wallis, as well as other product, marketing, technology and central support roles across the group. It has a beauty showroom on the ground floor.
The group's lenders reportedly drafted in FTI Consulting to advise on refinancing its debt pile earlier this year, while it posted pre-tax losses of £159.9 million for the year to February 29, against losses of £90.7 million the previous year. The group has been hit by the return of shoppers to the High Street after pandemic lockdowns ended, and fierce competition from rivals such as Chinese fast Shein.
Two weeks ago, The Times reported that executives for Manchester group Boohoo are mulling a break up of the business, spinning off some of the better-performing brands.
The newspaper reported there was potential value in spinning off or selling Debenhams and Karen Millen to revive the stock price, which has dropped over 85 percent over the past five years.
Boohoo is also selling its circa 25,000-square-foot production facility in Leicester, its first manufacturing site, after opening it two years ago.
Boohoo declined to comment.