The tension between Boohoo and Frasers escalates with strong statements from both sides.
- Boohoo accuses Frasers of “overreaching” in its governance demands.
- Frasers asserts Boohoo’s board privately acknowledged potential benefits of Mike Ashley’s expertise.
- Boohoo shareholders are advised against appointing Frasers’ nominees amidst ongoing disagreements.
- Frasers defends its market position and downplays competition concerns with Boohoo.
The ongoing dispute between Boohoo and Frasers has taken a new turn. Boohoo has positioned itself firmly against Frasers, a major stakeholder, by labelling the retail group’s demands as “desperate”. Boohoo argues that the governance expectations set by Frasers are not grounded in any legal or corporate standards, considering these requirements an excessive overreach.
Frasers, in its counter, contends that Boohoo’s objections are merely a cover to avoid adding Mike Ashley and Mike Lennon to its board. According to Frasers, Boohoo’s board conceded that Ashley’s past experience could be highly beneficial to all shareholders involved, despite the public disagreement. Frasers maintains that its business trajectory does not overlap significantly with Boohoo’s interests, except for potential competition between its House of Fraser and Boohoo’s Debenhams.
Further complicating the matter, Frasers has attempted to allay fears of undue influence over Asos, in which it holds a 21% stake. Frasers insists it only accesses the same information available to any typical shareholder, dismissing any notion of insider advantage.
The proxy advisor for Boohoo, Glass Lewis, has recommended a rejection of Frasers’ proposal to appoint Ashley and Lennon to the board. This recommendation comes as shareholders are preparing to vote on these resolutions, which are seen as critical to the future direction of Boohoo.
Frasers has critiqued Boohoo’s recent performance, citing the rise of fast-fashion competitors such as Shein and Temu as key factors contributing to Boohoo’s challenges. Frasers pushes for a leadership overhaul, hoping to rectify what it describes as Boohoo’s “dismal results” and lack of transparency.
The showdown between Boohoo and Frasers reveals deep strategic disagreements as both firms continue to vie for influence.
