Boohoo addressed shareholders amidst tensions with Frasers, insisting on not seeking confrontation.
- Frasers’ push for Mike Ashley as chair is seen by Boohoo as self-serving.
- Boohoo recalls Frasers’ past pressure attempts in other businesses.
- Frasers’ involvement with Asos raises additional concerns for Boohoo.
- Boohoo firmly opposes Frasers’ board proposals.
Boohoo has proactively reached out to its shareholders to communicate its stance in the ongoing tensions with Frasers. The fashion company has emphasised that it is ‘not deliberately seeking confrontation’, pushing back against Frasers’ demands to appoint Mike Ashley as chair. Boohoo asserts that the attempts are driven by Frasers’ ‘own commercial self-interest’.
The communication to shareholders highlights Boohoo’s view that Frasers’ recent campaign is crafted to destabilise the company. Boohoo draws attention to past instances where Frasers and its owner, Mike Ashley, have attempted to influence leadership changes in companies where they hold shares, such as Studio Retail. Boohoo claims these attempts included efforts to place Ashley as chairman, which ultimately led to the company entering administration and acquisition by Frasers for a nominal fee.
Additionally, Boohoo has previously raised apprehensions about Frasers’ significant stake in Asos, amounting to 27%. The fashion giant argues that concerns related to this involvement are ‘real and entirely valid’. Boohoo criticises Frasers’ nonchalant response to these concerns as a disregard for minority shareholder protection, indicated by Frasers’ dismissive attitude towards conflicts and competition issues.
Boohoo firmly opposes Frasers’ tactic of using strong-arm methods to pressure the company into accepting its demands. The board refuses to consider Mike Ashley or Mike Lennon as suitable candidates for independent positions. Boohoo’s message to its shareholders is unequivocal in rejecting Frasers’ proposals.
Boohoo remains steadfast against Frasers’ board appointments, urging shareholders to dismiss the proposals.
