Frasers Group has issued a strong response to Boohoo’s asset sale strategy, urging shareholder approval to be necessary before any sales occur.
- Controlling 27% of Boohoo, Frasers criticises Boohoo’s neglect of shareholder perspectives in current strategic moves.
- Frasers expresses concern over Boohoo’s recent refinancing deal and executive appointments, demanding transparency and engagement.
- A website is launched by Frasers to inform Boohoo shareholders and suggest solutions, amidst concerns of brand division.
- Boohoo’s move to appoint a new CEO is deemed a hasty attempt by Frasers to restrict shareholder influence.
Frasers Group has openly condemned Boohoo’s current strategy concerning the sale of its assets, calling for shareholder approval before any disposals. This assertive demand arises from Frasers’ significant influence, having a 27% stake in Boohoo. Frasers criticises Boohoo for allegedly overlooking the opinions and interests of its shareholders, stating, “Boohoo and its shareholders deserve better.”
Frasers has raised alarms over Boohoo’s recent refinancing actions, which were executed without what Frasers views as adequate engagement. The retail giant expresses particular concern about the swift appointment of a new CEO, perceived as a tactic to limit shareholder involvement. Frasers insists, “This has to stop. What will they try next? Desperate people do desperate things.”
Amidst these unfolding events, Frasers has initiated a dedicated website, www.boohoodeservesbetter.com, to offer Boohoo’s shareholders detailed insights and propose strategies to address leadership challenges.
There is a looming worry that Boohoo’s planned asset sales, including notable brands like Debenhams and Karen Millen, may occur under less than favourable conditions. Frasers contends that such sales would take place at a discounted valuation due to Boohoo’s present market struggles, deeming them unacceptable without prior shareholder approval.
The situation is exacerbated by Boohoo’s rejection of Mike Ashley’s proposal to become CEO, opting instead for Dan Finley from Debenhams. This decision is perceived by Frasers as a “desperate” effort to manoeuvre around shareholder scrutiny.
The ongoing conflict between Frasers Group and Boohoo underscores profound disagreements over corporate strategy and shareholder rights.
