Staff culled as struggling retailer Boohoo makes redundancies in Manchester

Members of staff at Boohoo were culled on Thursday (November 14) as the struggling fashion retailer made a number of redundancies in Manchester, the M.E.N. has learned.

It comes a day after the company released delayed results showing half-year losses had more than quadrupled - with pre-tax losses swelling to £147.3million in the six months to August 31.

It is understood at least 25 members of staff lost their jobs within the Merchandising and Buying team. The M.E.N. was told a number of other roles were also lost within the Project Delivery Team, just weeks before Christmas

READ MORE A 28-story tower and new student complex: The key developments planned for Manchester

A spokesperson for boohoo Group told the Manchester Evening News: “As a business, boohoo Group remains focused on ensuring that it is well-placed for growth, while maintaining a control on costs.

"Following a review of business operations, we have made the difficult decision to change the structure of some of our teams, which has affected some roles. Affected colleagues are being informed and we are supporting them at this time.”

The retailer denied to clarify exactly how many numbers of roles had been cut and within which departments. It is not known if roles in other offices have been affected or if anymore redundancies were to come.

On Thursday (November 14) it was revealed the online retailer had raised around £39.3 million through an investor cash call as it grapples with deepening losses and the mounting spat with Mike Ashley’s Frasers Group.

It came hours after Boohoo released delayed results showing half-year losses more than quadrupled and as it urged investors to reject Mr Ashley’s attempt to install himself as chief executive at an emergency meeting on December 20.

Boohoo’s unscheduled interim results after market close on Wednesday showed pre-tax losses swelled to £147.3 million in the six months to August 31, from losses of £36.6 million a year earlier.

Concurrently, Boohoo confirmed it was bracing for a Christmas face-off with Mr Ashley’s Frasers – a significant shareholder in Boohoo. Frasers had been advocating for Boohoo to appoint its founder, Mr Ashley, as leader following the resignation of the previous CEO in October.

Recently, Boohoo appointed ex-Debenhams boss Dan Finley as its new CEO, a move Frasers labelled as 'rushed'. And last month, Boohoo also announced plans for a strategic review, fuelling rumours about a potential split of the business, which encompasses brands like Oasis and Coast.

Frasers Group fired off an open letter last week, slamming Boohoo for allegedly attempting to "block the say of shareholders" and demanding that Boohoo 'will not make a disposal of any asset or business line, in whole or in part, without prior shareholder approval'.

However, Boohoo has hit back at Frasers, accusing them of 'promoting its own commercial self-interest' while disregarding other investors. On Wednesday, Boohoo stood firm, claiming it 'has a credible plan to unlock and maximise value for the benefit of all shareholders'.

Frasers, which holds a 27 per cent stake in Boohoo, has even launched a website titled 'Boohoo deserves better', intensifying its campaign for a boardroom shake-up. Despite suffering significant losses, Boohoo's new chief Mr Finley remained optimistic in Wednesday's results, highlighting 'has seen positives' in the first half with growth in beauty, Debenhams Marketplace, and the Karen Millen brand.

Acknowledging the hurdles, he noted: "There have been challenges and we continue to operate within a volatile market."