Retail titan Mike Ashley has commented publicly for the first time in years, stating “I am all in”, as he pushes to become CEO at struggling fashion giant Boohoo.
Ashley founded Mike Ashley Sports, now known as Frasers Group, when he opened a single Sports Direct store in 1982. Now, the self-made millionaire splits his time between his luxury holiday home in Miami and Mallorca. However, he could be swapping the sunshine out for Britain’s grey skies if he is accepted as Boohoo’s CEO and heads to its Manchester HQ.
Last week, Frasers Group issued a letter to Boohoo, demanding the appointment of its founder Mike Ashley as CEO who was equipped to tackle the mounting “crisis” at the struggling online fashion firm.
Frasers – Boohoo’s largest shareholder with a 23.6% stake – called for a meeting of Boohoo investors to back its plans to appoint Ashley, claiming it is “in the best interests of Boohoo, its shareholders and its stakeholders”.
Ashley is going up against Boohoo’s Executive Chairman and longtime retail rival Mahmud Kamani.
“I’m ready to dedicate my time and effort — including basing myself in Manchester as much as I deem required — to turn boohoo around and deliver value for all shareholders”, Mike Ashley told The Sunday Times via email.
Frasers’ wish for Mike Ashley to be appointed as a Director and Chief Executive Officer was first communicated to Boohoo at an in-person meeting on 18 October 2024, when Frasers attempted to establish a 48-hour deadline for the board to confirm that it would proceed.
According to Boohoo, this was the first time Frasers – now run by Ashely’s son-in-law Michael Murray – identified Mike Ashley as its preferred Board candidate after formally ruling out Ashley for the role on 9 October 2024.
This demand didn’t, however, come out of the blue. Frasers started snapping up shares in Boohoo last June. In May 2024, Ashley met with Kamani after he was stunned to learn that Kamani, his Co-founder Carol Kane and CEO John Lyttle would receive £1 million each in bonuses despite the company’s losses widening. After meeting with Ashley, Kamani withdrew Boohoo’s bonus proposals.
On 18 October, the company announced Lyttle would step down as the company launched a strategic review to try to drive an improvement in trading. One source described this as “the worst refinancing deal that a public company has done in living memory”. Immediately following this announcement, Frasers demanded Ashley take over from Lyttle.
The question remains as to why Mike Ashley would want to take on the role of CEO at Boohoo Group, whose brands include Karen Millen and Burton. Many industry professionals believe this is a ploy to one-up rival Kamani, whilst others believe he wants to get his hands on Debenhams. Still, the Boohoo board continues to review Frasers Group’s request.
