As Boohoo considers break-up, are restructures only for large companies?

Boohoo’s recent announcement that it may consider breaking up the business has garnered significant media attention. While such moves are often associated with large corporations, businesses of all sizes can benefit from restructuring. Common objectives include streamlining operations, improving tax efficiency, or adapting to evolving market conditions.

Restructuring can take various forms, from consolidating entities to transferring assets or shifting the business focus. Our Corporate and Property teams regularly assist clients with asset transfers between group companies.

Corporate Partner, Lynne Rathbone, explains that restructuring isn’t just for companies in financial difficulty:

Many of our SME clients proactively restructure to drive efficiency. Transferring assets, such as shares, property, or IP, between group entities can better align ownership with business objectives, creating operational synergies and making the business more agile.

Real estate plays a crucial role in restructuring. ‘Property transfers are often central to the process,’ adds Alex Curtis, Senior Commercial Property Solicitor.

Whether it involves downsizing, offloading underutilised assets, or acquiring new properties suited to future operations, restructuring allows businesses to reconfigure their property portfolio to support long-term growth.

For SMEs, restructuring offers an opportunity to optimise asset management, reduce inefficiencies, and strengthen the business for future challenges. It demands a high level of expertise in legal frameworks, and ensuring all factors are thoroughly evaluated is crucial in determining the best course of action moving forward. Our Corporate and Property teams have the expertise to guide you through the process, ensuring your business is well-positioned to thrive in a competitive environment.