Boohoo addresses Fraser Group’s proposal for Mike Ashley as CEO, emphasizing ongoing evaluations.
- Fraser Group challenges Boohoo’s management, pressing for leadership change with Mike Ashley as CEO.
- Boohoo clarifies it hasn’t ignored Fraser’s demands, stressing the need for prudent governance.
- Boohoo critiques Fraser’s portrayal of its recent debt refinancing as inaccurate and unfair.
- Shareholders are advised against reacting to Fraser’s propositions until further results are shared.
Boohoo has responded to Fraser Group’s proposal, which advocates for Mike Ashley to assume the role of CEO. This call followed Fraser Group’s public letter charging Boohoo with mismanagement. Boohoo has reiterated its commitment to evaluating requisitions and maintaining transparency with stakeholders. Boohoo’s Board is prioritizing strategic steps to enhance shareholder value, as outlined in their communication to the Stock Exchange.
Fraser Group’s demand for Mike Ashley’s directorship was made known on October 18, 2024, during a face-to-face meeting. Despite a previous indication that Ashley would not fulfill an executive role, Fraser Group now emphasizes his potential leadership. Boohoo stresses that any board appointments must be anchored in rigorous governance to safeguard its commercial interests. The Board remains open to discussions but insists on detailed assurances from Fraser Group.
Boohoo has contested Fraser Group’s characterization of its refinancing strategy, which the latter described as precarious and expensive. Boohoo argues that their recent financial actions have secured stability, backed by reputable financial institutions. The Board encouraged Fraser Group to present alternative financing proposals, none of which have been offered. Boohoo maintains confidence in its refinancing measures, which have been transparently discussed with Fraser.
In light of these developments, Boohoo plans to release interim results next month. Until then, shareholders are urged to withhold any reaction to Fraser’s propositions, pending further evaluation and comprehensive results.
Boohoo remains diligently focused on equitable governance and strategic financial management amidst Fraser Group’s challenges.
