Boohoo has hit back against Frasers Group , which is attempting to install its founder, Mike Ashley, as chief executive, describing Frasers’ criticisms of the online retailer as “inaccurate and unfair”. On Thursday, Sports Direct owner Frasers, which owns 27% of Boohoo , wrote a letter to the online fashion company’s board calling for an emergency meeting of shareholders to vote to install Ashley as its chief to replace current boss John Lyttle. Lyttle, who joined Boohoo from Primark in 2019, announced last week that he will leave when his successor is found, as the company secured a new £222m debt facility.
Frasers’ letter was highly critical of the Boohoo board, claiming it had “lost its ability to manage the company’s business and investments”, while describing its debt refinancing strategy as “wholly unsatisfactory”, saying it would result in an “appalling outcome for shareholders”. In its response on Friday, Boohoo, which also owns the Debenhams and PrettyLittleThing brands, said Frasers’ characterisation of its debt refinancing was inaccurate and unfair and argued that the deal would provide certainty around its future. It also said refinancing had been discussed on numerous occasions with Frasers, which had failed to come up with alternative proposals despite being asked.
Boohoo noted that Frasers had a 23.6% stake in its rival Asos, which needed to be “carefully considered” by its board. Boohoo saw sales soar during the Covid 19 lockdown.
