Debenhams Group has today confirmed the sale of its Sheffield distribution centre to Primark in a £90m cash deal.
A sum of £76.5m was received on completion and the remaining £13.5m will be received on vacant possession early next year.
Debenhams Group is entering into an agreement with a global 3PL provider that will enable it to continue to fulfil its stocked product “as efficiently as it does today” and will allow the group to scale its Delivered by Debenhams fulfilment proposition beyond fashion.
Dan Finley, Debenhams Group Chief Executive Officer, said: “The Debenhams Group turnaround continues at pace, and this transaction helps accelerate our progress.
“As a result of the disposal, net debt is now expected to be negligible at our year-end (Feb’27). We are also pleased to report that GMV (Gross Merchandise Value) growth has accelerated in Q2.”
On 14 July, Debenhams Group said GMV continued to grow year-on-year through June and July, while margins improved and returns declined. The business is now targeting better profit conversion and net debt below one times Adjusted EBITDA by the year ending February 2027.
First-half year performance will be reported in September, including progress on converting Adjusted EBITDA into reported profit.
Debenhams Group owns the Debenhams, PrettyLittleThing (PLT), boohoo, boohooMAN, Karen Millen, Coast, Warehouse, Oasis, Burton, Dorothy Perkins and Wallis brands. Its platform covers fashion, home and beauty and reportedly links shoppers to more than 25,000 partner brands.
The July update followed two guidance upgrades in nine months. In January, the company raised its FY26 Adjusted EBITDA guidance to approximately £50 million from £45 million, citing momentum at Debenhams and improved performance within its youth brands.
For the year ended 28 February 2026, the group subsequently reported Adjusted EBITDA of £53.3 million, up 35% year-on-year. Its pre-tax loss narrowed to £108.3 million from £326.4 million, partly because exceptional costs fell.
Group GMV before returns declined 21.6% to £1.82 billion during that year, reflecting a 35.8% fall across the youth brands. In contrast, Debenhams brand GMV rose 11.6% to £730 million.
At the time, Finley said PrettyLittleThing had returned to growth and profitability. The improvement follows the group’s January decision to retain the brand rather than continue exploring a potential sale. He also described Karen Millen as having “substantial international potential”.