// Boohoo receives boost after US-based hedge fund Citadel bought a 5% stake
// Citadel’s investment has brought confidence for Boohoo to recover
Boohoo has received a boost after US-based hedge fund Citadel bought a 5% stake in the online fast fashion retailer.
Shares rose 3.7%, or 2.04p to 57.1p after Citadel became Boohoo’s fifth-biggest backer.
The news comes after Boohoo recently reported its first sales drop in the UK. Shares are at six-year lows, having lost 82% in 2021.
Shares hit 412p in June 2020, valuing it at £5.2 billion. This has fallen as the UK emerged from lockdown, with Boohoo now worth £721 million.
However, Citadel’s investment has brought confidence for Boohoo to recover.
The hedge fund was founded in 1990 by chief executive Ken Griffin who has an estimated net worth of £21 billion and provided funding to the Ricketts family in their bid to buy Chelsea from Roman Abramovich.
Boohoo co-founder Mahmud Kamani remains the largest single shareholder in the group.