Boohoo’s board meeting with the Frasers Group excludes journalists, intensifying an ongoing leadership battle.
- The meeting focuses on Frasers Group’s push for Mike Ashley to join Boohoo’s board.
- Frasers Group has proposed restructuring experts to aid Boohoo’s financial struggles.
- Boohoo’s co-founder faces possible removal as part of Frasers’ plan.
- The outcome of the pivotal vote will be disclosed shortly.
Boohoo Group, the prominent ecommerce firm, has decided to conduct its board meeting without media presence, highlighting a significant phase in its dispute with the Frasers Group. This meeting, closed to journalists, centres on a vote regarding Mike Ashley’s potential involvement in Boohoo’s board, as proposed by Frasers. Only shareholders are anticipated to be present, and the results of the vote will be publicised this afternoon.
The backdrop to this meeting is a prolonged disagreement, with Frasers Group—a major stakeholder with 27% ownership—seeking to influence Boohoo’s leadership structure. Frasers advocates for the inclusion of Mike Ashley as chair and restructuring expert Mike Lennon as director, aiming to revamp the loss-making fashion company. They argue this is essential to counteract what they describe as “dismal results, lack of transparency, terrible refinancing, and further supply chain issues.”
Adding to the tension, Frasers has called for the removal of Mahmud Kamani, Boohoo’s co-founder. Over recent weeks, Frasers has consistently communicated with Boohoo shareholders, urging them to favour their plan during the decisive meeting on Friday. However, Frasers’ ambitions could face challenges due to its own recent financial downturns, including a profit forecast reduction to £550m-£600m following decreased pre-tax profits and sales.
In November, Frasers experienced a substantial fall in pre-tax profits from £36.6m to £147.3m in half-year results, with a 15% drop in sales. These financial setbacks complicate Frasers’ strategy to take control, despite its persistent communications campaign with Boohoo’s stakeholders.
The outcome of this crucial vote will determine the future leadership and strategic direction of Boohoo in light of Frasers Group’s assertive proposals.
