Boohoo is asking shareholders to dismiss Mike Ashley’s board nominations at the upcoming General Meeting.
- Institutional Shareholder Services (ISS) advises shareholders against appointing Mike Ashley as CEO and Mike Lennon to the board.
- ISS cites possible conflicts of interest and lack of detailed plans from Frasers as reasons to oppose the bid.
- Boohoo’s board, led by new CEO Dan Finley, aims to enhance shareholder value through a strategic business review.
- Amidst challenging times, Boohoo’s leadership criticises Ashley’s recent accusations of mismanagement.
Boohoo Group has once more asked its shareholders to reject Mike Ashley’s proposed board appointments at the General Meeting scheduled for 20 December. In a recent statement, Boohoo underscored that the Institutional Shareholder Services (ISS), a respected independent proxy adviser, recommends voting against proposals to appoint Ashley and Mike Lennon.
ISS expressed concerns about Ashley’s involvement, highlighting his perceived ‘superficial’ understanding of Boohoo’s operations and conflicts of interest arising from his direct connections with Frasers. ISS also pointed out the absence of concrete plans for improvement from Ashley’s side, forming a basis for their recommendation against his board ambitions.
Boohoo’s current board, under the leadership of new CEO Dan Finley, is conducting a detailed review aimed at enhancing shareholder value. The group accuses Ashley of advancing his ‘commercial self-interest’ through his investments in Boohoo and similar retailers. Recently, Ashley publicly criticised Boohoo management, blaming them for ‘destroying shareholder value’ and risking the company’s prospects.
In response, Boohoo Chair Tim Morris welcomed ISS’s support, aligning with the board’s recommendation to reject Ashley’s proposals. Morris affirmed their commitment to prioritising shareholder well-being and optimising value, supported by the strategic review and new CEO appointment as key measures.
CEO Dan Finley commented on the undervaluation of the company and expressed a strong determination to restore its disruptive influence in the retail industry. He emphasised maximising shareholder benefits while safeguarding their interests amidst challenging market conditions, exacerbated by rivals like Shein and Temu.
Though Boohoo has struggled recently, noted in its half-year financial report with decreased revenue and increased net debt, Frasers too, faces financial headwinds, with declining sales and a downward profit forecast for the year. This casts further doubt on Ashley’s boardroom aspirations.
Boohoo continues to stand firm against Mike Ashley’s board proposals, prioritising the interests of its shareholders.
