Frasers Group is pushing for its chief, Mike Ashley, to be appointed as the CEO of label Boohoo, citing "long-term mismanagement" that has resulted in "value destruction". The company, owned by Mike Ashley, penned a letter to Boohoo's board this morning, highlighting a "leadership crisis" within the group, as reported by . In a statement to the markets today, Frasers, which is Boohoo's largest shareholder with approximately 27 per cent ownership, expressed its commitment to "committed to maximising value" for shareholders.
The company stated: "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." Alongside this, an open letter was sent to Boohoo's board, lamenting the "abysmal trading performance and share price collapse," and noting that "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 said: "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 profit will be d.
