Boohoo Group is urging shareholders to reject Mike Ashley’s board nominations before their upcoming meeting on December 20.
- Institutional Shareholder Services (ISS) has recommended voting against Ashley’s board appointment due to perceived conflicts of interest.
- Boohoo’s board is working under new CEO Dan Finley to enhance shareholder value and sees Ashley’s proposals as disruptive.
- Boohoo’s recent revenue declines contrast with challenges faced by Ashley’s company, including a drop in sales and profits.
- Boohoo highlights its undervalued position and plans to strengthen its industry stance, opposing any changes that might hinder progress.
Boohoo Group has reiterated its call for shareholders to reject Mike Ashley’s proposed board appointments before the general meeting scheduled for December 20. The company released a statement highlighting that Institutional Shareholder Services (ISS), an independent proxy adviser, has advised shareholders to vote against the resolutions that would see Ashley take on a board role. ISS has criticized Ashley’s involvement, viewing it as potentially conflicted and superficial, noting that specific plans for changes have not been provided by Frasers Group.
Boohoo’s board is actively engaged in a business review under the leadership of newly appointed CEO Dan Finley. The aim is to implement strategies that enhance shareholder value, a vision that the current board sees as threatened by Ashley’s nominations. Boohoo has accused Ashley’s company of leveraging its stakes for personal gain, which contrasts with Boohoo’s focus on maximising shareholder returns.
Tim Morris, Boohoo’s Chairman, expressed appreciation for the support from ISS, aligning with Boohoo’s recommendation to decline the proposals from Frasers Group. He emphasized the board’s commitment to the ongoing business review designed to unlock value for investors and noted the importance of the recent appointment of CEO Dan Finley and successful fundraising efforts.
CEO Dan Finley expressed confidence in the company’s future, stating, “I believe that the Group is fundamentally undervalued. There is no doubt that there is enormous opportunity for the Group and I am determined to get back to being a disruptive and industry-leading business.” He reiterated the focus on protecting shareholder interests alongside Chairman Tim Morris and an independent board.
Boohoo acknowledges the challenges it has faced, including a 15% drop in revenue and a 10.5% decline in adjusted operating profit, with net debt rising over £100 million. These declines come amidst increasing competition from fast-fashion rivals like Shein and Temu. Nevertheless, Boohoo remains optimistic about future growth without the immediate need for board changes, especially given Frasers’ recent profit warnings and sliding sales.
Boohoo remains firm in its decision to preserve shareholder value amidst challenging industry dynamics and boardroom disputes.
