Boohoo has today issued a response to Frasers Group’s open later that demanded the appointment of Mike Ashley as its CEO. The group said it will “take into account” the entraupaneurs’ stake in the company, but that the appointment “requires careful consideration and proper governance”.
Yesterday, 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”.
In response, Boohoo assured that it is proactively “reviewing options for each division to unlock and maximise shareholder value for all shareholders”.
Mike Ashley
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 identified Mike Ashley as its preferred Board candidate after formally ruling out Ashley for the role on 9 October 2024.
This follows John 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. The process for finding a suitable replacement started before the meeting with Frasers on 18 October.
Whilst Boohoo’s board remains “willing to discuss Board representation with Frasers in a constructive manner”, they clarified that any appointment “requires careful consideration and proper governance”.
Boohoo concluded that it will publish its interim results in November. But, in the meantime, it advised its shareholders to “take no action in respect of Frasers’ proposals”.
