‘Evil Knievil’ takes out a bet against Boohoo

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‘Evil Knievil’ takes out a bet against stock market darling Boohoo

By Ben Harrington For The Mail On Sunday

Published: | Updated:

The investor known in the City as ‘Evil Knievil’ has taken out a bet against stock market darling Boohoo.

Simon Cawkwell, who gained the nickname for placing risky bets on falling share prices, has taken out a ‘substantial’ short position on the online retailer.

Short-sellers borrow stocks, sell them and then hope to buy them back for less, returning them to the original investor at a profit.

Simon Cawkwell  has taken out a ‘substantial’ short position on online retailer Boohoo

The move on Boohoo comes after ShadowFall – run by an analyst dubbed the ‘Dark Destroyer’ – argued in late May that Boohoo had misled investors about its cashflow.

Cawkwell, who recently made money from shorting shares in German payments firm Wirecard, said: ‘I’m surprised people have not criticised [Boohoo’s management] more but they will in due course. They will come unstuck.’

However, he added: ‘I’m not sure on timing. The market seems minded to ignore the ShadowFall report.’

Boohoo was founded in 2006 by Mahmud Kamani, 55, and Carol Kane, 53. It has a market capitalisation of £5.2billion.

It recently acquired Oasis and Warehouse for £5.25million and it spent £330million to take control of PrettyLittleThing from Kamani’s son, Umar. It owns other brands including Karen Millen. Its shares closed at £4.13 on Friday.

A Boohoo spokesman said: ‘We strongly refute the allegations.’

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