Frasers Group has openly challenged Boohoo, demanding shareholder approval before asset sales.
- Frasers accuses Boohoo of neglecting shareholder interests with recent strategic decisions.
- Concerns raised include Boohoo’s refinancing and CEO appointment without proper engagement.
- Frasers has launched a website to advocate for a better approach to Boohoo’s leadership crisis.
- Frasers insists on exploring all options before any asset sales to avoid undervaluation.
Frasers Group, owning a significant 27% stake in Boohoo, has publicly demanded that Boohoo seeks shareholder approval before proceeding with any asset sales. This move reflects Frasers’ concerns over Boohoo’s strategic decisions, particularly after the fashion retailer announced a strategic review aimed at enhancing shareholder value.
The friction between the two entities centres on Frasers’ accusations that Boohoo’s board has disregarded shareholder opinions. Frasers further criticised Boohoo’s recent refinancing and the hasty appointment of a new CEO, suggesting these actions were attempts to sideline shareholder input.
Expressing its ‘grave concerns’, Frasers set up a dedicated website to provide information on its proposed solutions to what it terms Boohoo’s leadership crisis. The website aims to unite Boohoo’s shareholders in demanding a more considerate strategy from the retailer’s board.
Frasers has highlighted the precarious commercial conditions Boohoo is currently facing, warning that any asset disposals under these circumstances would likely be undervalued. Frasers insists that all possible avenues must be explored to secure the best outcome for shareholders, suggesting that Boohoo’s board has not engaged sufficiently with alternative options.
Boohoo’s recent move to appoint Dan Finley as CEO, rejecting Mike Ashley’s interest in the role, has been met with disapproval from Frasers, which labelled the decision ‘desperate’. This appointment has further fuelled Frasers’ argument that Boohoo’s leadership is acting without adequate shareholder consultation.
Frasers Group continues to push for greater transparency and shareholder involvement in Boohoo’s strategic decisions.
