Sports Direct's parent company, Frasers Group, has demanded the appointment of its founder Mike Ashley as the new chief executive of Boohoo amid warnings of an escalating "crisis" at the online fashion retailer. With a 27% stake in Boohoo, Frasers is pushing for a shareholder meeting to endorse their plan to install Mr Ashley, insisting it's "in the best interests of Boohoo, its shareholders and its stakeholders". The group is adamant that Mr Ashley could immediately replace outgoing chief executive John Lyttle, while also advocating for restructuring specialist Mike Lennon to be added to the board.
In an an open letter, Frasers highlighted what they describe as a "leadership crisis", following Mr Lyttle's resignation announcement last week. Frasers said: "The board appointments proposed by Frasers are now the only way to set a new course for Boohoo’s future." Boohoo said it was reviewing the request and would make an announcement in due course, but urged shareholders to take no action.
. Frasers has expressed frustration in their letter, claiming Boohoo has been unresponsive to previous private requests to appoint Mr Ashley as CEO. It follows Mr Lyttle's decision to step down after a five-year tenure, although he plans to assist with the leadership transition.
Boohoo announced a strategic review that's sparked rumours of a potential company break-up. It also reported a 15% revenue drop to £620m for the half-year leading up to August 31. Frasers said: "In the face of persis.