Boohoo Group is urging shareholders to vote against proposed board changes involving Mike Ashley, emphasizing ISS support for their stance.
- Institutional Shareholder Services advises against appointing Mike Ashley and his associates, citing conflict of interest concerns.
- Boohoo’s board, under CEO Dan Finley, focuses on enhancing shareholder value amidst proposed changes.
- Boohoo accused Frasers of self-interest in leveraging its stake for board influence without presenting a change plan.
- Recent financial figures show Boohoo’s revenue and profits falling, despite strategic fundraising efforts.
Boohoo Group has renewed its call for shareholders to oppose the proposed board appointments of Mike Ashley as CEO and Mike Lennon as a board member. Institutional Shareholder Services (ISS), a respected proxy advisor, backs Boohoo’s position, advising shareholders to reject these resolutions. ISS criticized Ashley’s views on Boohoo’s performance as lacking depth and raised concerns over potential conflicts of interest regarding the proposed candidates.
Additionally, ISS noted the absence of specific plans from Frasers to improve Boohoo’s operations, further supporting their recommendation to vote against the proposed board changes. Boohoo’s current board, led by CEO Dan Finley, has expressed a strong strategy for enhancing shareholder value, responding with measures like a recent successful fundraising effort of £39 million.
In direct opposition, Mike Ashley has accused Boohoo leadership of damaging shareholder interests and risking the company’s future. Despite these accusations, Boohoo’s leadership remains steadfast, with Chairman Tim Morris expressing gratitude for ISS’s support aligning with Boohoo’s own recommendations. Morris emphasized the company’s focus on maximizing shareholder value through strategic reviews and leadership appointments.
Dan Finley, Boohoo’s CEO, asserts the group’s significant undervaluation and envisages considerable growth opportunities. He reiterated the company’s commitment to innovation and maintaining its industry-leading stance. Finley, along with Tim Morris and the independent board, remains focused on creating the best outcomes for shareholders.
In recent financial outcomes, Boohoo reported a 15% decrease in revenue and a 10.5% drop in adjusted operating profit, with net debt rising by over £100 million. Concurrently, Frasers itself is experiencing a downturn, with lowered profit forecasts and a decline in sales, complicating its takeover ambition.
Boohoo continues to safeguard its future by actively opposing proposed board changes seen as unfavorable to shareholder interests.
