Boohoo Group has formally addressed Frasers Group’s proposal regarding the prospective appointment of Mike Ashley as CEO.
- Frasers Group had published an open letter suggesting Mike Ashley for the CEO role, criticising Boohoo’s board conduct.
- Boohoo clarified its stance on board representation with regard to Frasers’ proposal, citing procedural commitments.
- The group explained the ongoing CEO search process and the importance of governance in decision-making.
- Further discussions on Boohoo’s recent debt refinancing were outlined, disputing Frasers’ portrayal.
In a detailed response, Boohoo Group addressed Frasers Group’s suggestion of Mike Ashley as the potential new chief executive. Frasers Group, Boohoo’s largest shareholder, had criticised the board’s management and accused it of failing to engage with significant stakeholders.
Boohoo countered these claims by explaining that discussions about board representation had been active. According to Boohoo, Frasers had communicated their preference for Ashley only recently in a meeting held on 18 October, after previously ruling him out for the role.
The group emphasised the necessity for proper governance and due diligence before any CEO appointment, underscoring that the process of appointing a new chief executive was already underway prior to Frasers’ proposal. The existing CEO, John Lyttle, will remain in his position until the appointment process concludes.
Boohoo also addressed critiques about its recent £222 million debt refinancing, which Frasers deemed as potentially leading to severe corporate actions. Boohoo rebutted these claims, asserting that the refinancing provided future certainty and was backed by a consortium of high street banks.
Additionally, Boohoo expressed willingness to consider any alternative refinancing proposals from Frasers, none of which had been presented despite numerous discussions. This clarification served to counter Frasers’ depiction of Boohoo’s refinancing strategies as lacking transparency.
Boohoo Group remains resolute in maintaining robust governance and transparency amidst shareholder discussions.
