The boss of Boohoo is to step down from the online fashion retailer as it launched a strategic review to try to drive an improvement in trading.

It came as the fast fashion retailer also announced another slump in sales and struck a new refinancing deal.

On Friday, Boohoo chief executive John Lyttle said he has informed the company’s board that he will step down from his role after five years.

The retail business said he will continue to work with the firm’s leadership team over the coming months to ensure a smooth transition.

The former Primark chief operating officer led the company during a challenging period, with sales weakening recently as customer budgets came under pressure from the rising cost of living and it was knocked by supply chain troubles.

During Mr Lyttle’s tenure, the company also significantly expanded through the acquisition of a raft of brands, including Debenhams and Karen Millen.

In the update to shareholders, Boohoo also said it is launching a strategic review of potential options to improve shareholder value, increasing speculation regarding a potential break-up of the business.

It came as the company also reported that revenues dropped by 15% to ￡620 million for the six months to August 31.

It reported that sales by gross merchandise value (GMV) were down 7% to ￡1.18 billion for the half-year. GMV was ￡802 million for the period once taking customer returns into account.

UK sales were down only 2% for the period, with an 18% drop in US sales and 21% slump in sales from its rest of world division driving its decline.

The business, which also owns PrettyLittleThing, told shareholders its sales by GMV are likely to improve in the second half of the year, with adjusted earnings also expected to improve.

Boohoo also revealed that it has signed a new ￡222m debt financing agreement, which it said will provide it with the necessary funds for the next stage of its development.