Debenhams fundraising raises £35m amid Mike Ashley tensions

Published: 17 February 2026. The English Chronicle Desk. The English Chronicle Online.

The Boohoo owner’s £35m Debenhams fundraising plan has sparked fresh debate over potential tensions with Mike Ashley. Debenhams fundraising is highlighted as a crucial part of the company’s financial restructuring and turnaround strategy, aiming to reduce debts and strengthen brands such as Oasis, Warehouse, Pretty Little Thing, and Karen Millen. Analysts note that while all brands are now profitable, this Debenhams fundraising could reignite clashes with major shareholder Ashley over strategic control and board influence.

The £35m cash call comes less than two years after Boohoo raised £39m from investors, measures taken to stabilise finances amid heavy competition from Shein and Vinted. Debenhams confirmed that part of the Debenhams fundraising will support operational changes, including the closure of a distribution centre and repositioning the Debenhams brand as an online marketplace for other retailers.

Independent retail analyst Nick Bubb suggested that investor confidence may be tested by the group’s ongoing financial pressures, reflected in a nearly 9% share price fall on Tuesday morning. Debenhams operates under a three-year £175m debt facility, and analysts at Peel Hunt noted that the group is approaching critical covenant thresholds, reinforcing the importance of the Debenhams fundraising initiative.

Uncertainty remains over whether Ashley’s Frasers Group, holding nearly 30% of Debenhams, will support the move. Ashley has previously opposed corporate strategies, including his attempt to join Boohoo’s board in 2024, which shareholders blocked. Frasers has also criticised proposed asset sales, creating tension that could affect shareholder voting on the current fundraising.

Debenhams emphasized that its brands are profitable and that the turnaround plan is progressing. Institutional investors have already indicated support for £24m of the fundraising at 20p per share, an 11% discount to Monday’s closing price. The group continues to explore non-core asset disposals and brand licensing as part of its broader debt reduction and profitability strategy.

The company’s roadmap focuses on transforming the former department store into a digital-first retail platform, leveraging founder Mahmud Kamani’s expertise. Investments in technology, marketing, and online operations aim to boost sales, optimise inventory, and strengthen UK market presence. However, the looming potential clash with Ashley adds uncertainty, highlighting the complexities of shareholder influence in the fast-fashion sector.

This Debenhams fundraising effort signals a determined approach by management to consolidate financial health and pursue growth, while balancing debt reduction and shareholder expectations. Analysts predict that strong investor support, cost control, and online expansion will be essential for sustaining momentum throughout 2026.

Debenhams remains committed to operational efficiency, profitable growth, and strategic flexibility, seeking to maintain its position in the competitive UK retail landscape. The board’s decisive actions, including the current £35m Debenhams fundraising, demonstrate an effort to safeguard the company’s future while navigating complex shareholder dynamics.

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