Boohoo’s Boohoo’s co-founders have sold a whopping £142.5m of shares in their company, it emerged today, sending the online retailer’s stock down in early trading.
Co-founder and executive director Carol Kane sold a third of her stake in the fashion brand – 15m shares – for 285p each to slash her stake to 2.7 per cent.
Read more: Boohoo reports ‘record’ Black Friday trading
Fellow co-founder and executive chairman Mahmud Kamani sold 35m shares at the same price to reduce his stake to 13.1 per cent.
Investors reacted to the sale by quitting the stock, sending Boohoo’s share price down 4.7 per cent to 283.1p.
Between the pair they still own a 15.8 per cent stake in Boohoo despite the sell off, which was managed by Zeus Capital and Jefferies.
It comes just days after Boohoo told the market it had enjoyed a record Black Friday performance in an unscheduled trading update after a five per cent drop in shares.
Boohoo has grown rapidly since it went public in 2014, buying Pretty Little Thing and Nasty Gal clothing brands in 2017 and targeting younger people who primarily shop on their mobile phones.
The Manchester-based company said it is “comfortably in line with market expectations” earlier this week. And it added that its Burnley and Sheffield warehouses performed strongly over the Black Friday weekend.
News that it had a record Black Friday sent shares up as much as three per cent on Tuesday.
It is focusing on building its overseas presence as well as growing its range of products, with international sales now comprising 44 per cent of total revenue.
Main image credit: Boohoo