The cofounders behind the UK’s hottest fast-fashion retailer Boohoo sold a $186 million stake in the company

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  • Boohoo cofounders Mahmud Kamani and Carol Kane sold shares in their fast-fashion empire worth $186 million (£142.5 million), according to a regulatory filing on Thursday.
  • Boohoo is the UK’s fast-growing fast-fashion retailer that was set up by the duo in 2006.
  • The company has been growing at a rapid pace and is now valued at more than $3.8 billion. 
  • Visit Business Insider’s homepage for more stories.

The co-founders of fast-growing British online fashion retailer Boohoo, Mahmud Kamani and Carol Kane, have sold shares in the group worth £142.5 million ($186 million), according to a regulatory filing on Thursday.

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Kamani and Kane, who founded the group in Manchester, northern England, in 2006, between them sold 4.3% of Boohoo’s equity through a placing to institutional investors, reducing their combined holding to 15.8%.

Kamani, the company’s executive chairman, sold 35 million shares at 285p each, reducing his stake to 13.1%, while Kane, an executive director, sold 15 million shares at the same price, cutting her holding to 2.7%.

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The placing was managed by Zeus Capital and Jefferies.

Boohoo has expanded quickly, listing its shares in 2014 and buying the PrettyLittleThing and Nasty Gal brands in 2017. The retailer is tapping into a generation of younger consumers who shop on their mobile phones and share fashion tips through social media.

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Boohoo said on Tuesday it had a record performance across the Black Friday period.

Shares in Boohoo, up 84% so far this year, closed on Wednesday at 297.1 pence, giving a market capitalisation of £3.42 billion.

Online retailers like Boohoo are growing at the expense of traditional shopping groups such as the 135-year old Marks & Spencer, whose equity value has slipped to £3.7 billion.

Shares in Boohoo were down 2.5% at the time of writing.

Read the original article on Reuters. Copyright 2019.

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