Frasers Group has issued an open letter urging the replacement of Boohoo’s executive chairman, Mahmud Kamani, with Mike Ashley.
- Frasers described the situation at Boohoo as chaotic, citing poor performance and lack of transparency.
- The retail group highlighted recent boardroom battles, demanding quick shareholder action to appoint Mike Ashley and Mike Lennon as directors.
- Frasers countered Boohoo’s accusations of self-interest, presenting a legal opinion dismissing competition law concerns.
- Boohoo responded by appointing Tim Morris as independent chair, separating Mahmud Kamani’s duties.
Frasers Group has publicly demanded the replacement of Boohoo’s executive chairman, Mahmud Kamani, with Mike Ashley. In a decisive move, Frasers addressed Boohoo shareholders, stating, “a simple choice: win with Mike Ashley or lose with Mahmud Kamani.” This open letter is part of Frasers’ escalating confrontation with Boohoo, where it calls for shareholders to vote for the appointment of Ashley and restructuring expert Mike Lennon as directors at the forthcoming shareholder meeting scheduled for December 20.
Frasers has justified its position by pointing to Boohoo’s allegedly dismal financial results, lack of transparency in operations, unsatisfactory refinancing efforts, and unresolved supply chain issues. It criticised the current situation, stating “the chaos at Boohoo must end”. Frasers’ position is that these leadership changes are essential for the benefit of Boohoo, its shareholders, and stakeholders.
The announcement comes as tensions rise between the two companies after Boohoo appointed Dan Finley as chief executive, overlooking Ashley’s offer to fill the role. This has sparked accusations of Frasers acting in its own commercial self-interest, which Frasers robustly denies. They have cited legal expert Rohert O’Donoghue KC, who confirmed that there were no significant competition law issues with their proposals.
Boohoo has responded by appointing Tim Morris, previously a non-executive director and former general counsel at TalkTalk and Carphone Warehouse, as its independent chair. This decision allows Kamani to retain his executive responsibilities while relinquishing the chair position. Morris expressed satisfaction with his new role, highlighting significant board actions like the recent business review, successful refinancing, and the strategic installation of Dan Finley as CEO.
The leadership debate at Boohoo underscores the high stakes and strategic decisions pivotal to its future.
