RETAILER Frasers Group has called on the online fashion group Boohoo, in which it holds a 27% stake, to appoint the high-profile Mike Ashley as chief executive, saying this would solve the “leadership crisis” at the business . Frasers, which owns House of Fraser department stores, Sports Direct, Evans Cycles and the Flannels luxury fashion chain, said it has requisitioned a general meeting and written an open letter to Manchester-based Boohoo’s board. The company stated: “Frasers is Boohoo’s largest shareholder, with c.
27% of the issued share capital. This is a significant investment for Frasers in its capacity as a constructive, long-term, strategic investor, committed to maximising value for the benefit of all Boohoo shareholders and other stakeholders. Frasers ditches £111m takeover plans for luxury firm Mulberry “Frasers is requisitioning a general meeting of Boohoo to appoint Mike Ashley as a director and CEO of Boohoo and Mike Lennon as a director of Boohoo, to take effect without delay.
Frasers firmly believes that these appointments are in the best interests of Boohoo, its shareholders, and its stakeholders.” The statement said the board appointments proposed by Frasers “are now the only way to set a new course for Boohoo’s future”, adding: “Frasers urges Boohoo shareholders to vote in favour of its proposals.” Boohoo said last week that its chief executive John Lyttle was to step down after five years in the role although no date for his depa.