Frasers Group has urged Boohoo shareholders to replace executive chairman Mahmud Kamani with Mike Ashley.
- In an open letter, Frasers Group criticises Boohoo’s performance and leadership, calling for change at the upcoming shareholders’ meeting.
- The company highlights Boohoo’s financial challenges and supply chain issues as key reasons for the proposed leadership overhaul.
- The legal stance supports Frasers’ position, ensuring no competition law violations in their demands.
- Boohoo has responded by appointing Tim Morris as independent chair, splitting Kamani’s role to maintain day-to-day operations.
Frasers Group has intensified its campaign for leadership change at Boohoo, addressing shareholders through an open letter. The group insists that Mahmud Kamani, the current executive chairman, should be replaced by Mike Ashley. Frasers presents a stark choice to shareholders: ‘win with Mike Ashley or lose with Mahmud Kamani,’ emphasising the urgency of their proposal.
The letter comes amid ongoing dissatisfaction with Boohoo’s performance. Frasers points to ‘dismal results, lack of transparency, terrible refinancing, and further supply chain allegations’ as critical factors necessitating change. By advocating for Mike Ashley and restructuring expert Mike Lennon as new directors, Frasers argues that this move aligns with the best interests of Boohoo and its stakeholders.
Previously, Boohoo rejected Ashley’s bid for the CEO position, opting instead to appoint Dan Finley, formerly of Debenhams, as CEO. This decision has not deterred Frasers, which continues to assert the necessity of strong leadership to restore Boohoo’s market position.
In response, Boohoo has taken its own steps to address the leadership challenge. It has appointed Tim Morris, a non-executive director since 2021, as independent chair. Morris will oversee the company’s board while Mahmud Kamani transitions to the role of executive vice chair. This division of leadership roles is intended to maintain independent oversight while ensuring continuity in Boohoo’s daily operations.
Tim Morris, expressing enthusiasm for his new role, remarked, ‘I am delighted to be appointed by the board as chair of Boohoo.’ He recounted milestones achieved since the business review, including refinancing, appointing a new CEO, and successful fundraising efforts, marking progress amidst the leadership debate.
The upcoming shareholders’ meeting will determine the future leadership direction for Boohoo.
