Frasers Group has doubled down on its criticism of Boohoo Group, now calling on the company’s shareholders to vote out its co-founder and chairman, Mahmud Kamani.
In an open letter, Frasers presented Boohoo shareholders with a choice: “win with [Frasers owner, Mike] Ashley or lose with Mr. Kamani”, stating that the latter’s delivery of results, “lack of transparency and further supply chain allegations” should leave “no doubt” in the decision.
With this, the group has further reaffirm its call to appoint Ashley to the role of chief executive officer, a request that had previously been denied by Boohoo following the exit of former head John Lyttle in October.
Instead, Boohoo appointed Debenhams chief, Dan Finley, to the helm, a move that Frasers said was “rushed” and came despite Finley’s apparent lack of experience in leading a public company, “not least one going through a period of significant trading and financial uncertainty”.
Frasers has thus requisitioned a shareholder meeting of Boohoo to allow for a vote on this matter, urging those in question to vote for the appointment of both Ashley and restructuring expert Mike Lennon as directors of the company.
Tensions between Frasers and Boohoo have been circulating since early October, after the latter revealed it was to carry out a review of its structure and an emergency fundraise following what Frasers said was “dismal” financial performance.
What then began was a string of back-and-forth dialogue, with Frasers later stating there was a “leadership crisis” at the fast fashion group, a critique that Boohoo said came from a company that was focused on its “own commercial self-interest”.
Boohoo raised gross proceeds of around 33.3 million pounds in a Placing and Subscription process, and a further six million via a retail offer.