Boohoo, the online fashion retailer, has firmly stated it is not seeking conflict as it urges shareholders to oppose Frasers’ call for Mike Ashley as chair.
- Boohoo accuses Frasers of acting solely in its own commercial interests, causing instability within the company.
- This is not the first instance of Frasers exerting pressure, with past efforts to influence Studio Retail’s governance.
- Boohoo remains concerned about Frasers’ significant stake in Asos and dismissive responses to these issues.
- The fashion giant stands against Frasers’ tactics and rejects proposals for new board appointments.
Boohoo, a prominent online fashion retailer, has taken a strong stance against Frasers’ recent attempts to influence its board composition. The company clearly communicated to its shareholders that it is not in search of confrontation but is committed to protecting its interests by advising against the appointment of Mike Ashley as chair. Boohoo argues that Frasers is primarily motivated by its own commercial interests and has accused it of running a campaign aimed at destabilising Boohoo.
According to Boohoo, Frasers’ manoeuvres are not unprecedented. It recalls similar instances where Frasers had applied significant pressure on the management team at Studio Retail, a company which eventually found itself under Frasers’ control after falling into administration. Boohoo highlights this pattern to caution its shareholders of the potential risks involved.
The apprehension is amplified by Frasers’ existing involvement with Asos, where it holds a 27% stake. Boohoo has consistently raised valid concerns about this relationship, stressing that Frasers’ dismissive reaction to these concerns, as demonstrated in an open letter dated 21 November 2024, reflects a lack of regard for minority shareholder protection. Boohoo underscored this attitude with Frasers’ flippant remark: ‘Conflicts and competition? – Not an issue!’
In response to these unfolding events, Boohoo’s board has communicated its rejection of Frasers’ aggressive approach. The board refuses to accept Frasers’ nomination of Mike Ashley or Mike Lennon as viable independent candidates for the board. This rejection stems from the strongly perceived threats to Boohoo’s autonomy and governance integrity.
Boohoo remains steadfast in its position to safeguard its governance against Frasers’ encroachments.
