Amidst ongoing tensions with Frasers Group, Boohoo Group announces significant board changes.
- Tim Morris elevated to independent chair as Boohoo responds to Frasers’ critiques.
- Mahmud Kamani transitions to executive vice chair, maintaining a key operational role.
- Frasers Group’s open letter calls for further board adjustments and critiques financial strategies.
- Boohoo’s recent £39.3m fundraising concludes amidst shareholder disagreements.
Boohoo Group has taken decisive steps in reshaping its board to address growing tensions with major shareholder Frasers Group. The company has promoted Tim Morris, a former solicitor and Carphone Warehouse executive who joined Boohoo as a non-executive director in 2021, to the position of independent chair. This move follows increasing pressure from the Frasers Group, which includes an open letter calling for restructuring at the board level.
Co-founder Mahmud Kamani, despite calls for his resignation from the Frasers Group, has assumed the role of executive vice chair. This strategic adjustment allows Kamani to remain actively involved in Boohoo’s operational leadership, continuing to steer its young fashion brands while ceding the independent chair role to Morris. Notably, Kamani is restricted from acquiring Boohoo shares until May 2025 and has opted to forgo his salary until November 2025.
The Frasers Group, holding a significant 28.1% stake in Boohoo, has been vocal about its dissatisfaction with the company’s leadership and financial strategies. In their latest open letter, they propose that Mike Ashley and Mike Lennon be added to the Boohoo board, further emphasising their desire for change in the company’s governance.
Frasers’ discontent dates back to October when it criticised Boohoo’s financial strategy and suggested replacing John Lyttle as chief executive. In response, Boohoo appointed Dan Finley from Debenhams as Lyttle’s successor and urged shareholders to reject Frasers’ proposals at the forthcoming general meeting on 20 December.
Amidst these governance changes and shareholder friction, Boohoo successfully completed a £39.3m fundraising round as announced last week. This financial manoeuvre highlights Boohoo’s efforts to stabilise its financial position and reinforce its strategic initiatives, despite the ongoing challenges presented by its major shareholders.
Boohoo Group’s board reshuffle and strategic decisions highlight its efforts to navigate shareholder tensions and strengthen its financial footing.
