Boohoo Group faces backlash as it excludes Frasers Group from upcoming shareholder meetings.
- New CEO Dan Finley plans to engage with top investors this week.
- Frasers Group, owning 27% of Boohoo, is notably absent from the meeting invite.
- The exclusion is seen as part of a public dispute with Frasers’ Mike Ashley.
- Boohoo maintains it is open to transparent dialogue with all shareholders.
Boohoo Group has stirred controversy by excluding its largest shareholder, Frasers Group, from an imminent series of shareholder meetings. This decision comes as newly appointed CEO Dan Finley organises discussions with key investors, reportedly excluding the owner of Sports Direct, Frasers Group.
Frasers Group holds a significant 27% stake in Boohoo, making its exclusion particularly striking. This move occurs amid a tense public disagreement with Frasers’ founder, Mike Ashley. Ashley had previously criticised Boohoo’s performance, demanding a leadership role to rectify what he described as poor performance and a dramatic fall in share price. Despite these criticisms, Boohoo chose to appoint Dan Finley, formerly of Debenhams, to lead the company, a choice that was publicly labelled as ‘desperate’ by Ashley.
Boohoo has defended its actions by stating it is committed to maintaining open and transparent communication with all its shareholders. However, Frasers Group’s absence from these discussions highlights ongoing tensions. The company’s decision underscores the challenges within its shareholder relationships, possibly affecting the strategic direction and investor confidence moving forward.
Boohoo’s decision to exclude Frasers highlights enduring tensions in its shareholder relationships amidst leadership changes.
