Frasers Group challenges Boohoo’s asset sale strategy, urging shareholder approval.
- Frasers Group owns 27% of Boohoo and accuses it of ignoring shareholder views.
- Boohoo’s recent CEO appointment seen as an attempt to bypass shareholder input.
- Frasers fears asset disposals could be disadvantageous without thorough review.
- Frasers establishes informational site for Boohoo shareholders amidst leadership concerns.
Frasers Group has openly challenged Boohoo’s strategic decisions, particularly its plan to sell assets. With a considerable stake of 27% in Boohoo, Frasers is pushing for shareholder approval before any asset sale could proceed. Frasers argues that such significant decisions should reflect shareholder interests and fears that current moves undermine this principle.
Frasers accuses Boohoo’s directors of disregarding shareholder views. The group’s open letter criticises Boohoo’s recent refinancing efforts and the perceived haste in appointing a new CEO. This appointment of Dan Finley, the Debenhams boss, is viewed by Frasers as a tactic to circumvent shareholder influence, which they find unacceptable.
The concern extends to Boohoo’s strategic review to maximise shareholder value. This review may involve partitioning the group, which includes brands like Debenhams and Karen Millen. Frasers warns that any asset sales, including those of core brands or key properties like the Soho office, need careful scrutiny to prevent sales from turning disadvantageous due to market pressures.
Frasers has communicated its apprehensions directly to Boohoo’s board, advocating for exploring all possible alternatives before asset sales. They insist on this approach to ensure the best outcomes for shareholders. However, attempts to engage meaningfully with Boohoo’s board have reportedly been ignored, prompting Frasers to publicise its demands.
In response to its concerns, Frasers has launched a website aimed at Boohoo shareholders. This site is designed to provide information about Frasers’ proposed solutions to what it terms a leadership crisis at Boohoo. Frasers stresses the importance of resolving these issues to secure the future stability and success of Boohoo.
Frasers Group remains firm in its stance, promoting shareholder engagement in Boohoo’s strategic decisions.
