Boohoo Group has made significant changes to its board amid calls for leadership restructuring by Frasers Group.
- Tim Morris has been appointed independent chair, stepping up from his previous role as non-executive director.
- Mahmud Kamani has transitioned to the role of vice chair as part of the board’s restructuring.
- Frasers Group, holding a 28.1% stake in Boohoo, has been vocal in its criticism of the leadership.
- The company has addressed shareholder concerns, voting against Frasers Group’s proposed board changes.
Boohoo Group has strategically restructured its leadership amidst pressure from Frasers Group, who holds a notable portion of Boohoo’s shares. Tim Morris, previously a non-executive director and former Carphone Warehouse executive, has been promoted to independent chair. This move aims to strengthen the governance of the company, providing an independent perspective at the helm.
Mahmud Kamani, a co-founder and previously the executive chairman, has taken on the responsibilities of an executive vice chair. This change enables him to continue steering the company’s lines of young fashion brands while stepping back from the chairmanship. In agreeing to the new arrangement, Kamani has also deferred his salary until November 2025 and agreed not to acquire further shares in the company until May 2025.
The board’s decision comes in response to Frasers Group’s open letter urging for Kamani’s resignation. Frasers has suggested their own representatives, Mike Ashley and Mike Lennon, for positions on Boohoo’s board. However, Boohoo has been proactive, appointing Dan Finley of Debenhams to succeed John Lyttle as CEO, thus sidestepping the proposal from Frasers.
The relationship between Boohoo and Frasers Group has been tense, marked by Frasers’ vocal criticisms of Boohoo’s financial strategies. In a decisive move, Boohoo has advised its shareholders to reject Frasers’ suggested resolutions during the upcoming general meeting.
Boohoo Group’s recent board changes demonstrate a strategic shift in leadership dynamics amidst external pressures.
