Boohoo Group has addressed Frasers Group’s proposal for Mike Ashley to become its CEO, emphasising the need for careful governance.
- Frasers Group, a major shareholder, suggested Mike Ashley as CEO, citing Boohoo’s alleged management failures.
- Boohoo refuted claims of ignoring Frasers’ requests, highlighting previous discussions and governance needs.
- The company described Frasers’ assessment of recent refinancing as inaccurate, having already engaged with stakeholders.
- Boohoo stressed that the CEO appointment process is already underway, with existing leadership until a decision is made.
Frasers Group, holding a 27% stake in Boohoo, recently urged the appointment of Mike Ashley as Boohoo’s CEO, after the announcement of John Lyttle’s impending departure. Frasers’ open letter expressed concerns over Boohoo’s management and engagement with its largest shareholder.
In response, Boohoo stated that there had been adequate discussion about board representation and that Frasers’ request was first raised during an in-person meeting on 18 October 2024, requesting a swift decision which Boohoo considered premature. Boohoo highlighted that Ashley had previously been ruled out by Frasers for this role, aiming for a non-executive nominee instead.
Boohoo further explained that the appointment of a CEO is a significant board decision requiring thoughtful governance and that their search process for a suitable candidate was initiated before October’s meeting with Frasers. Meanwhile, Lyttle will continue his CEO role pending a final decision.
Frasers criticised Boohoo’s recent refinancing strategy as problematic, suggesting it might require extreme corporate measures. Boohoo countered these claims, asserting that the refinancing was transparent and supported by its banking partners, and while suggestions from Frasers were welcomed, none were forthcoming.
The ongoing dialogue reflects dynamic tension between Boohoo’s strategic course and its shareholders’ expectations, amid significant changes in leadership and financial structuring.
Boohoo Group remains committed to a governance-led approach amidst leadership transitions and shareholder interactions.
