Boohoo's board has extended an offer to Frasers for a board seat, but with the stipulation that neither Mike Ashley nor Mike Lennon are the proposed candidates. In response to Frasers' open letter, Boohoo's board made it "clear to Frasers" that they would not endorse the appointment of either Mike Ashley or restructuring expert Mike Lennon under any circumstances, as reported by . However, the fast-fashion firm stated its willingness to provide Frasers with a single board seat "if it puts forward an appropriate candidate for the role of non-executive director.
" Frasers Group argued in an open letter on Thursday that Boohoo's resistance to Mike Ashley and Mike Lennon joining its board essentially "boils down" to apprehensions that it would "dilute [executive vice chair Mahmud Kamani] influence". Two prominent proxy advisers, Glass Lewis and Institutional Shareholder Services (ISS), have supported Boohoo's concerns about potential conflicts of interest should Ashley and Lennon be appointed. Frasers, which owns a 28% stake in -based Boohoo and also holds a stake in rival online retailer Asos, was accused by Boohoo's board of a "selective approach" to shareholder protection.
In a market statement this morning, Boohoo clarified that "when it comes to protecting minority shareholders, Frasers will decide which commitments it wishes to give and on what terms". Boohoo's board has made it clear that "this selective approach is consistent" with the sentiments expressed in Frasers' lett.
