Frasers Group wants to appoint its boss Mike Ashley as the chief executive of fast fashion brand Boohoo, citing “long-term mismanagement” which has led to “ value destruction “. The Mike Ashley-owned company wrote to the board of Boohoo this morning, saying the group was suffering from a “leadership crisis”. In a message to markets this morning , Frasers, Boohoo’s largest shareholder, which owns around 27 per cent of the business, said it was “committed to maximising value” for shareholders.
The firm said it is: “Requisitioning a general meeting of Boohoo to appoint Mr Mike Ashley as a director and CEO of Boohoo and Mr 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 board appointments proposed by Frasers are now the only way to set a new course for Boohoo’s future.
Frasers urges Boohoo shareholders to vote in favour of its proposals.” In an open letter sent to Boohoo’s board alongside this, it bemoaned the “abysmal trading performance and share price collapse,” saying that in “the six-month trading period ended 31 August 2021, the company’s revenue for the six-month trading period ending 31 August 2024 is down 36.5 per cent.
” It added: “We expect that gross profit will follow the declining trend of revenue, and when Boohoo announces its half-year results in full in November, gross prof.