Mike Ashley commits to turning Boohoo Group around as its new CEO.
- He plans to base himself in Manchester for extensive involvement.
- Frasers Group, led by Michael Murray, holds 27% of Boohoo’s shares.
- John Lyttle’s resignation marks a leadership transition at Boohoo.
- Frasers criticises Boohoo’s process for appointing a new CEO.
Mike Ashley, the founder of Frasers Group, has announced his intention to revitalise the Boohoo Group by stepping into the role of CEO. With a strong commitment to the company’s future, Ashley stated that he is prepared to focus his time and effort on this turnaround, even relocating to Manchester to ensure his involvement is substantive.
Since 2022, Frasers Group has been under the leadership of Ashley’s son-in-law, Michael Murray, and has become Boohoo’s largest shareholder after acquiring 27% of its shares starting in June 2023. This significant stake underscores the group’s interest in Boohoo’s success and forms the backdrop to Ashley’s proposed leadership role.
The departure of John Lyttle, who announced his resignation as CEO on 18 October, has paved the way for this potential change in leadership. Ashley’s commitment comes after a period of challenges for Boohoo, including critical mismanagement and the problematic refinancing efforts that Lyttle oversaw.
In an open letter dated 24 October, Ashley publicly positioned himself as a candidate for the CEO role, which Boohoo is currently evaluating with careful consideration and due governance. Ashley emphasised the need for urgent and decisive action to address Boohoo’s recent struggles and aimed to assure stakeholders of his dedication to delivering shareholder value.
The Frasers Group has expressed concern over Boohoo’s approach to selecting a new CEO, calling their process rushed and demanding a more deliberate and informed approach.
Mike Ashley’s proposed leadership as Boohoo’s CEO seeks to address pressing challenges and drive shareholder value.
