The Boohoo Group has raised concerns about Frasers Group’s business tactics, marking an escalation in their ongoing dispute.
- Frasers, a major shareholder in Boohoo, holds a 27% stake in the company, intensifying competitive tensions.
- Boohoo claims that Frasers is not just a shareholder but a trade competitor seeking to boost its own interests.
- Key rivalries include brands like PrettyLittleThing and Karen Millen, clashing with some of Frasers’ investments.
- Despite tensions, Boohoo is open to discussing board representation but insists on strict governance conditions.
The Boohoo Group has publicly addressed its concerns regarding Frasers Group’s business strategies, highlighting a significant clash of interests. Frasers, holding a substantial 27% stake in Boohoo, has been accused of prioritising self-interest over its role as a shareholder. This accusation comes amid an ongoing dispute between the two retail giants.
Earlier this week, Frasers Group issued an open letter criticising Boohoo for what it termed as desperate actions and urged the company not to offload any assets without shareholder consent. This development underscores the competitive tension between the two, particularly given Frasers’ significant shareholding in Boohoo.
The dispute centres on Boohoo’s assertion that Frasers acts not merely as a shareholder but as a trade competitor. It is said that Frasers is leveraging its significant shareholding in Boohoo and other UK retailers to promote its own commercial interests. Boohoo has pointed to Frasers’ investments in multiple UK retailers, including Debenhams, as evidence of competitive conflict.
Furthermore, Boohoo highlights that Debenhams, a Boohoo-owned entity, directly competes with House of Fraser, a Frasers’ acquisition target prior to Boohoo’s takeover in 2021. This rivalry underlines the complex interlinkages between their respective market strategies and acquisitions.
Similarly, Boohoo has noted that Frasers holds a significant investment in ASOS, another prominent player in the fast fashion sector that competes with Boohoo’s brands. Boohoo’s statement also underscores Frasers’ history of investing heavily in UK retailers that operate in direct competition with Boohoo.
Amid these points of contention, Boohoo has expressed its willingness to engage in constructive discussions regarding board representation with Frasers. However, it stipulates that only a suitable non-executive board member will be considered, alongside ensuring that proper governance measures are in place to safeguard the company’s commercial position and protect other shareholders’ interests.
The ongoing conflict between Boohoo and Frasers reflects deep competitive and shareholder tensions that require careful navigation.
