Boohoo Group has restructured its board, promoting Tim Morris to independent chair.
- Frasers Group has been urging for changes in Boohoo’s leadership strategy.
- Mahmud Kamani transitions to the role of vice chair, relinquishing some duties.
- Kamani’s new role includes refraining from acquiring shares until May 2025.
- These changes align with Boohoo’s strategic direction and recent fundraising success.
Boohoo Group has recently reorganised its leadership by appointing Tim Morris as the independent chair. This move is part of a strategic shift within the board, reflecting the company’s adaptation to external pressures and internal goals. Tim Morris, who joined Boohoo Group in 2021, comes into the role with extensive experience over his career, including time as a solicitor and executive at Carphone Warehouse.
The decision to adjust the board’s structure comes amidst increasing criticism from Frasers Group, a significant shareholder with a 28.1% stake in Boohoo Group. Frasers Group has been vocal about its demands for change, openly calling for Mahmud Kamani to step down. However, Boohoo has retained Kamani as executive vice chair, allowing him to maintain influence over the company’s young fashion brands while ensuring compliance with shareholder concerns by appointing an independent chair.
In line with these changes, Mahmud Kamani has agreed not to acquire any Boohoo Group shares until May 2025 and has waived his current salary until November 2025. These concessions seem to be part of a compromise with Frasers Group, which has been calling for greater influence on the board, specifically advocating for the appointment of Mike Ashley and Mike Lennon to the Boohoo board.
Adding to the complexity of the situation is Boohoo’s recent successful capital raising. The company achieved a £39.3m fundraising round, indicative of solid investor confidence and an integral part of its growth strategy. This financial boost supports Boohoo’s capacity to navigate these structural changes while pursuing its market objectives.
Despite the ongoing public disagreement, notably marked by open letters from Frasers Group criticising Boohoo’s strategy, the company’s board remains aligned with its decision to encourage shareholders to oppose the resolutions proposed by Frasers at the upcoming general meeting. This dispute highlights the contrasting visions between the two entities regarding the company’s future direction.
The recent board changes at Boohoo Group underscore the company’s strategic adjustments amidst pressure from Frasers Group, reflecting a dynamic approach to governance and shareholder engagement.
