Boohoo shareholders vote against appointment of Mike Ashley to board

Boohoo Group has confirmed that shareholders have "overwhelmingly" voted against the appointment of Mike Ashley and Mike Lennon as directors at the fashion giant. 

The results of the General Meeting held today, 20 December, revealed that approximately 63.7% of shareholders voted against both resolutions previously proposed by Frasers Group.

Dan Finley, CEO of Boohoo Group, said: "Our group is a dynamic business, with great brands and extremely talented people, underpinned by best-in-class infrastructure. Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders.

"I am super energised to realise the significant opportunities I see for this business. I continue to believe this group is materially undervalued. Our most important work is ahead of us."

Mike Ashley

The decision comes after Boohoo Group had been subject to a campaign by Ashley to get himself installed as CEO. This was cut short when Boohoo appointed Dan Finley, former boss at Debenhams, which is owned by the group, in November.

Ashley then tried to get a seat on the board instead, alongside restructuring expert Mike Lennon, which Boohoo also resisted.

Frasers Group claimed in a letter that Boohoo’s opposition to Ashley and Lennon joining the board was because of fears they would "dilute" the influence of its co-founder Mahmud Kamani.

Ashley attacked Kamani for being an "egotistical founder who has an unhealthy grip on the board". He also said Frasers was trying to protect minority shareholders from a potential plan by Boohoo bosses to break the company up as part of a turnaround effort.

However, shareholder advisory firms Institutional Shareholder Services (ISS) and Glass Lewis urged Boohoo investors to reject Ashley’s bid for a seat on the company's board earlier this month - with the result of today's vote now granting their requests.

Tim Morris, Independent Non-Executive Chair of Boohoo Group, said: "I would like to thank our shareholders for their support. We remain focused on delivery of our Business Review with the objection of unlocking and maximising value for all shareholders."