The owner of Boohoo and Debenhams is raising £35 million from shareholders. This move could lead to a fresh conflict with Mike Ashley, founder of Sports Direct. Debenhams also owns brands like Oasis, Warehouse, Pretty Little Thing, and Karen Millen. The company said the new funding will help reduce debts and support its turnaround plans. These include cutting costs, selling a distribution centre, and running Debenhams as an online marketplace for other brands. The raise is backed by Boohoo founder Mahmud Kamani. This fundraising comes under 18 months after a £39 million raise, as the group fights tough rivals like Shein and Vinted. After the announcement, Debenhams’ share price fell almost 9%. Retail analyst Nick Bubb said, “Investors may be dismayed at the group’s financial situation.” Peel Hunt analysts noted Debenhams is “bumping up against covenants” on a £175 million debt facility. Debenhams said all its brands are now profitable and it expects underlying group profits of £50 million for the year ending February, matching prior guidance. The company added, “The turnaround plan is going apace. The fourth quarter has continued to see material improvements in sales, alongside the continued removal of significant cost from the business as it is simplified.” Institutional shareholders have already shown support for £24 million of the fund raise, priced at 20p a share—an 11% discount to the previous close. However, it is unclear if Frasers Group, Debenhams’ biggest shareholder with nearly 30%, will support this move. Frasers, led by Ashley, has criticized asset sales before. Ashley has tried and failed to take key roles at Boohoo and was blocked by shareholders in 2024. Last month, Debenhams dropped plans to sell Pretty Little Thing but may still sell non-core assets or license brands to cut debt. The company said, “The board has multiple strategies to de-leverage the group further.” Ashley lost to Boohoo when it bought Debenhams’ brand in 2021 after the store collapsed. Last year, Frasers opposed the group’s name change from Boohoo to Debenhams, showing the strained relationship. The funding raise sets the stage for more battles between Boohoo’s bosses and Ashley’s Frasers Group as they shape Debenhams’ future.