Boohoo Group announces leadership changes, promoting Tim Morris amid tension with Frasers Group.
- Non-executive director Tim Morris steps up as independent chair with immediate effect.
- Mahmud Kamani transitions to vice chair, maintaining his executive role despite Frasers’ pushback.
- Frasers Group, holding a significant share, pressures Boohoo for further board changes.
- The ongoing dispute highlights differing strategies and visions between Boohoo and Frasers Group.
Tim Morris, a former solicitor and Carphone Warehouse executive, has been promoted to the role of independent chair at Boohoo Group, a decision that was made unanimously by the board. Morris originally joined the company in 2021 as a non-executive director. This change was announced following a recent board meeting and takes effect immediately.
Mahmud Kamani, co-founder and formerly the executive chairman, will now serve as vice chair. Despite the shift, Kamani will continue in his day-to-day executive capacity, where he manages Boohoo’s young fashion brands. As part of the transition, Kamani has agreed not to acquire any Boohoo shares until May 2025 and will forgo his salary until November 2025.
The leadership change comes amidst tensions with Frasers Group, which owns a 28.1% stake in Boohoo. Frasers has been vocal about its discontent, recently issuing an open letter demanding Kamani’s resignation. They propose the nomination of Mike Ashley and Mike Lennon to Boohoo’s board, intensifying the conflict with Boohoo’s current leadership.
This friction is not new; it traces back to earlier disputes where Frasers Group criticized Boohoo’s financial approaches in October. They had suggested that Mike Ashley should replace John Lyttle as chief executive. In contrast, Boohoo appointed Dan Finley from Debenhams, asking its shareholders to vote against Frasers’ propositions at the upcoming general meeting on December 20.
Boohoo has also announced the successful completion of a £39.3 million fundraising round, adding a financial milestone amidst the leadership reshuffle and looming shareholder discussions.
The ongoing power struggle between Boohoo and Frasers Group underscores a deeper strategic conflict impacting the company’s leadership decisions.
