Iain McDonald returns to Debenhams as chairman amid turnaround

Iain McDonald has returned to Debenhams as the online fashion firm’s chairman as it continues its major turnaround programme.

The retailer told shareholders on Friday that Mr McDonald has replaced Tim Morris in the role with immediate effect.

Mr McDonald, who is a significant shareholder in Debenhams, was previously on the firm’s board from June 2017 to February 2026.

He stepped down following an equity raise which saw his fund, Belerion Capital, invest around five million US dollars (£3.7 million) in the business.

Mr McDonald and the fund own more than 17.8 million shares in Debenhams, making them among its top 10 shareholders.

Debenhams, which was renamed from Boohoo Group last year, said the reappointment comes as its “focus moves to rebuilding equity value” in the business after making progress in its turnaround efforts.

Shares in the company have risen by 85% over the past year amid efforts to reduce costs to improve profitability.

On Friday, the group also announced the appointment of Michael Stewart, founder of AIM-listed Eagle Eye Solutions, and Stephen Rothwell to its board as independent non-executive directors.

Dan Finley, chief executive of Debenhams Group, said: “I would like to thank Tim for the significant and critical contribution that he has made to our turnaround.

“The business has been significantly strengthened during his tenure as chairman.

“We are pleased to strengthen the board today with the appointments of Iain, Stephen and Michael.

“They bring significant experience in capital markets and advanced technology, which will benefit us as we continue to deliver our multi-year turnaround.”

The leadership changes come a day after Debenhams, which also owns the Boohoo and Pretty Little Things brands, revealed earnings bounced back into profit for the past six months as sales strengthened.

The group also said it hopes to reduce its net debt from £102 million to “negligible” levels after selling off parts of its business in recent weeks.

On Tuesday, Debenhams revealed the sale of women’s fashion brand Nasty Gal for 16 million US dollars (£11.9 million) to WSG Brands.

It came a week after the company announced the sale of its Sheffield warehouse for £90 million to Primark, which plans to use the site to support home deliveries.