Frasers Group pushes for a leadership overhaul at Boohoo, urging shareholders to replace Mahmud Kamani with Mike Ashley.
- The proposal cites Boohoo’s poor performance, lack of transparency, and supply chain issues as reasons for change.
- Frasers Group believes appointing Mike Ashley and Mike Lennon is in Boohoo’s best interest.
- Boohoo recently appointed Tim Morris as independent chair while moving Kamani to executive vice chair.
- Frasers challenges Boohoo’s claims of acting in self-interest, referencing legal opinions to support their position.
Frasers Group has issued a compelling call to action for Boohoo’s shareholders, arguing that a significant change in leadership is necessary for the company’s success. The open letter highlights the urgency of replacing current executive chairman Mahmud Kamani with Mike Ashley, framing the decision as a clear choice between potential success or continued struggles.
In backing their proposal, Frasers Group points to several critical aspects of Boohoo’s recent history, including underwhelming results, a lack of transparency, problematic refinancing deals, and ongoing allegations surrounding its supply chain. These issues are presented as key indicators that a new leadership direction is needed to end what Frasers describes as ‘chaos’ within the company.
The recommendation to appoint Mike Ashley, along with restructuring expert Mike Lennon, is presented as a strategic move designed to benefit Boohoo and its various stakeholders. Frasers Group emphasizes that these proposed changes are not only crucial for addressing current challenges but also for ensuring the long-term growth and stability of the fashion retailer.
This leadership change discussion came about after Boohoo chose to hire Dan Finley as CEO instead of Ashley, a move that arguably intensified Frasers Group’s resolve. In its communication, Frasers further counters Boohoo’s assertion that these advocacy efforts are merely for commercial self-gain, citing legal expert Rohert O’Donoghue KC who noted no substantial competition law issues.
Meanwhile, Boohoo has taken steps to diversify its executive roles, appointing Tim Morris, a non-executive director since 2021, as the independent chair while positioning Kamani as the executive vice chair. Morris expressed his enthusiasm for his new role, remarking on the board’s recent decisive actions, which include completing refinancing, appointing a new CEO, and successful fundraising.
The current leadership dispute at Boohoo underscores a pivotal moment that could redefine its strategic direction.
