Boohoo advises shareholders to reject Frasers’ proposal for board changes, citing self-interest motives.
- Boohoo claims Frasers’ actions are intended to destabilise its leadership team.
- Previous confrontations with Frasers’ owner, Mike Ashley, underscore Boohoo’s concerns.
- Ashley’s prior attempts to influence Studio Retail and Asos involvement raise red flags.
- Boohoo dismisses Ashley and Lennon as unsuitable board candidates, advocating for shareholder protection.
Boohoo has officially urged its shareholders to oppose the demands put forward by Frasers Group, which involve appointing Mike Ashley as chairman. The company insists that these actions are driven by Frasers’ self-serving interests rather than the welfare of Boohoo or its stakeholders.
In a direct communication with shareholders, Boohoo underscored its belief that Frasers’ persistent campaign seeks to unsettle Boohoo’s executive leadership. This is not an isolated incident; the fashion giant recalls previous interventions by Frasers’ owner, Mike Ashley, aimed at replacing leadership in companies where Frasers holds shares.
Boohoo highlighted past examples to illustrate their concerns, noting that Frasers had exerted significant pressure on the management at Studio Retail, leading to its administration and subsequent acquisition by Frasers for a nominal sum. These manoeuvres alarm Boohoo, especially considering Frasers possesses a substantial stake in Asos as well.
Citing Frasers’ indifferent response to Boohoo’s earlier objections, the company points to a dismissive attitude towards safeguarding minority shareholder interests. Boohoo referenced a public letter dated 21 November 2024, in which Frasers appeared unperturbed by the potential conflicts of interest inherent in its proposals.
Reflecting on the proposed board appointments, Boohoo conveyed strong disapproval of both Mike Ashley and Mike Lennon, viewing them as inadequate independent representatives for the board. The company strives to maintain a governance structure that prioritises the protection and voice of minority shareholders.
Boohoo remains committed to safeguarding its shareholder interests in the face of Frasers Group’s advances.
