Frasers Group raises concerns over Boohoo’s latest executive decisions, questioning the appointment process and asset management strategy.
- Frasers criticises Boohoo for allegedly rushing the appointment of Dan Finley as CEO to succeed John Lyttle.
- The call for Boohoo to avoid asset disposals without shareholder consensus highlights Frasers’ dissatisfaction.
- Frasers insists that any asset sale must be fair and supported by independent analysis to ensure protection of shareholder interests.
- Amid challenging market conditions, Frasers stresses the need for transparency and thoughtful strategy from Boohoo.
Frasers Group has issued an open letter, expressing strong dissatisfaction with Boohoo’s latest executive decisions and strategy concerning asset management. The letter, dated 6 November, urges Boohoo’s board to publicly assure that no assets will be sold without prior shareholder approval.
Frasers criticises Boohoo for what it perceives as a hasty appointment of Dan Finley, former Debenhams CEO, to replace John Lyttle. This move, Frasers suggests, appears to sideline shareholders’ input, which they argue is vital.
Frasers’ communication further underscores their demand for a transparent procedure in any asset disposal. They suggest that terms of sale should be validated as ‘fair and reasonable’ by an independent advisor or investment bank, safeguarding Boohoo’s shareholders’ interests.
The letter reflects concerns over Boohoo’s current market challenges, noting that asset sales amidst these conditions may result in undervaluation, which Frasers finds unacceptable without shareholder agreement.
Frasers highlights that without these measures, Boohoo risks undermining the interests of its stakeholders. They emphasise the importance of collective engagement to navigate the demanding commercial landscape effectively.
Frasers Group remains vigilant and insists on strategic transparency and collaboration to safeguard shareholder value at Boohoo.
