Frasers Group has officially requested a major leadership change at Boohoo, proposing Mike Ashley take over from Mahmud Kamani.
- The group has criticised Boohoo’s recent performance and urged shareholders to consider new leadership for potential improvement.
- Frasers has outlined specific concerns involving Boohoo’s transparency, financial handling, and supply chain management.
- A legal standpoint was highlighted, suggesting Frasers’ actions do not breach competitive regulations.
- Boohoo has initiated its own set of leadership changes, appointing Tim Morris as independent chair.
Frasers Group has publicly called for the replacement of Boohoo’s executive chairman, Mahmud Kamani, with Mike Ashley. Frasers communicated through an open letter to Boohoo’s shareholders, describing the decision as a binary choice: success with Ashley or continued struggles with Kamani.
Frasers has expressed dissatisfaction with Boohoo’s financial results, transparency issues, unsatisfactory refinancing arrangements, and ongoing supply chain problems. Frasers suggests these issues underscore the need for a leadership overhaul, advocating for both Mike Ashley and restructuring expert Mike Lennon to join the board.
The dispute follows Boohoo’s decision to appoint Dan Finley as chief executive instead of agreeing to previous suggestions for Ashley. Frasers has dismissed Boohoo’s claims of self-interested motives, referencing a legal opinion by Rohert O’Donoghue KC, which indicated no legal competition concerns.
Meanwhile, Boohoo has made internal alterations by designating Tim Morris as the independent chair. Kamani will transition to executive vice chair, separating his operational duties from board leadership. Tim Morris, who has been with Boohoo since 2021, expressed his enthusiasm for contributing to Boohoo’s strategic direction.
The leadership demands and changes at Boohoo highlight a critical moment in the company’s ongoing strategic evolution.
