Boohoo has urged its shareholders to reject Mike Ashley’s demand to be placed in charge of the struggling fast fashion group, saying that that Ashley is “not suitable” and subject to conflicts of interest due to his role at Frasers. Boohoo and Frasers have been engaged in a public disagreement over how to take the company forward for the last month. Frasers has accused the retailer of “long-term mismanagement” which has led to “ value destruction “, and has criticised its £222mn refinancing, while Boohoo has called Frasers’ take on the business “inaccurate and unfair”.
While Ashley’s bid to become chief executive suffered a blow last week when Boohoo appointed Dan Finley to the role, investors will be able to vote on whether to appoint Ashley, as well as restructuring specialist Mike Lennon, to the board on December 20. In a statement in a circular to investors, Boohoo urged its shareholders to vote against the resolution. “The board has a credible plan to unlock and maximise value for the benefit of all shareholders through its Business Review and in Dan Finley has the right CEO to lead the business,” it said.
It argued that Ashley and Frasers have “attempted to exert influence over the Board’s refinancing, Business Review and appointments to the board for the good of themselves alone, and are acting in their own self-interest.” Boohoo said: “Frasers has prior history of this sort of corporate behaviour shareholders should ask themselves wh.
