Frasers Group to put forward new candidate for Boohoo board
After shareholders rejected its initial proposals, Frasers Group is continuing to request a seat on Boohoo Group's as it prepares to put forward another candidate.
The owner of Flannels and Sports Direct said it "respects the views of the independent shareholders" after 63.7% voted against the appointment of Mike Ashley and restructuring expert Mike Lennon as directors on Boohoo's board on Friday, 20 December.
In a new statement today, Frasers said: "We will put forward a highly qualified candidate in due course and fully expect Boohoo’s board to uphold their commitment without hesitation or delay."
Boohoo had previously offered Frasers Group a seat on its board – but not for retail tycoon Ashley. It came amid an ongoing spat between the two companies over the past few months.
It started as Ashley attempted 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.
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 the shareholder vote granting their requests.
