Boohoo moves fast to counter Frasers’ demands, names Debenhams chief as new group CEO

It was never likely to be a long search given that Mike Ashley is snapping at its heels, but Boohoo Group has moved extra fast to name a new CEO following recent news that John Lyttle will step down.

On Friday it said Dan Finley is its new top executive. Formerly of JD Sports and currently CEO of Debenhams, the group’s fast-growing digital department store, he’ll take up the role with immediate effect.

The company said its board “continually considers long-term succession planning for key executive roles. Dan’s appointment as CEO recognises the phenomenal success that Debenhams has enjoyed and reflects the evolution in strategic direction of the group”.

We’re told the 41-year-old “has deep expertise in driving the growth of online businesses”. Before joining Debenhams, he spent a decade as group multi channel director at JD Sports, “where he delivered unprecedented digital growth as JD Sports became a global multi-channel leader and entered the FTSE 100”.

He joined Boohoo as Debenhams CEO in January 2022 and the company said that “under his leadership, the business has been transformed into Britain’s leading online department store with a GMV annual run rate of c.£800 [million], through a capital-light, cash generative and highly profitable marketplace model”.

Alistair McGeorge, Boohoo Group deputy chairman, said: “The board of Boohoo was unanimous in its decision to appoint Dan Finley as CEO. Dan is one of the outstanding leaders in a new generation of digital retailers. Dan and his team have successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth  marketplace. Before Debenhams, Dan had a track record of phenomenal success in online retail. The board looks forward to working with him, as we continue the review of options to unlock and maximise shareholder value.”

And Finley himself added that having “brilliant brands and people, underpinned by best-in-class infrastructure” at Debenhams, he looks forward to “exploring opportunities to extend this business model across the group”.

What Frasers Group will make of this is open to question. It has been pushing for its majority owner Mike Ashley to become CEO and this clearly thwarts that plan.

But there’s no denying that Finley is highly regarded within the retail sector and Frasers may be prepared to give him the benefit of the doubt and see how he performs.

What’s likely though is that it won’t sit patiently and wait for a recovery that’s too much of a long-term process.