Sports Direct owner Frasers Group has demanded the appointment of its founder Mike Ashley as chief executive of Boohoo as it warns over a mounting “crisis” at the struggling online fashion firm. Frasers – which is Boohoo’s largest shareholder with a 27% stake – is calling for a meeting of Boohoo investors to back its plans to appoint Mr Ashley, claiming it is “in the best interests of Boohoo, its shareholders and its stakeholders”. The firm said Mr Ashley could take on the role at Boohoo, replacing chief executive John Lyttle “without delay”, while it also wants restructuring expert Mike Lennon to join the board.
In an open letter to Boohoo’s board, Frasers cautioned over what it claimed was a “leadership crisis” at the retailer after Mr Lyttle announced he was stepping down last week. Frasers claimed Boohoo had failed to engage with it and had not responded to a request made privately to install Mike Ashley as chief executive (PA) Boohoo said it was reviewing the request and would make an announcement in due course, but urged shareholders to take no action. In its letter to Boohoo, Frasers claimed the firm had failed to engage with it and had not responded to a request made privately to install Mr Ashley as chief executive.
It follows Mr Lyttle’s announcement last Friday that he would step down after five years as chief executive, but continue to work with the leadership team to ensure a smooth transition. At the same time, Boohoo revealed plans for.
