Boohoo has received approval from its lenders for a £39.3 million fundraising initiative.
- This financial move is aimed at supporting Boohoo’s turnaround strategy following significant losses.
- Frasers Group, Boohoo’s largest shareholder, is calling for leadership changes, including the replacement of Mahmud Kamani.
- Frasers criticises Boohoo’s recent performance and seeks to appoint Mike Ashley and Mike Lennon as new directors.
- The upcoming shareholder meeting on 20 December is expected to be pivotal for the company’s direction.
Boohoo has successfully obtained lender approval for a £39.3 million fundraising through a share issue. This decision aims to support the company’s turnaround plan following a substantial pre-tax loss of £147.3 million reported for the half-year ending on 31 August 2024. Chief Executive Dan Finley expressed satisfaction with securing lender support, viewing it as a significant step in the ongoing business review, aimed at enhancing shareholder value.
Chair Tim Morris also expressed gratitude towards Boohoo’s banking partners for their continued backing, emphasising that the new funds would provide a strong foundation for the company’s future growth. This financial strategy forms part of Boohoo’s efforts to stabilise its operations and improve financial performance amid challenging circumstances.
Simultaneously, tensions are rising between Boohoo’s management and its largest shareholder, Frasers Group—holding a 28.1% stake. Frasers, led by Mike Ashley, has been vocal about their discontent with current leadership and is actively seeking to install new directors, citing failures in performance, transparency, and supply chain management as key concerns.
Frasers has urged Boohoo shareholders to consider changes in leadership, particularly the removal of executive chairman Mahmud Kamani, and the appointment of Mike Ashley and restructuring expert Mike Lennon. This reflects Frasers’ desire to influence Boohoo’s strategic direction and address what it describes as ‘chaos’ within the company.
The forthcoming shareholder meeting on 20 December is poised to be crucial in determining Boohoo’s leadership and future strategy. With Frasers pushing for significant changes, the outcome of this meeting could mark a major turning point for Boohoo.
The upcoming shareholder meeting will likely define Boohoo’s future direction amidst ongoing challenges.
