Boohoo has come under attack from a short-seller whose founder is known in the City as the “Dark Destroyer”.
Shares in the online retailer fell by 9 per cent at one point yesterday after Shadow Fall issued a 54-page report accusing the fashion business of misleading investors about profits and cashflow.
Shadow Fall is a London hedge fund that specialises in taking positions against companies’ share prices, describing its approach as “free thinking, fundamental and forensic”. It is led by Matthew Earl, whose nickname reflects the impact that his research can have on company share prices.
Boohoo, founded in 2006, sells fashion online at affordable prices. Its brands include Coast and Karen Millen and its frantic growth rate has made it a stock market darling