Boohoo has explicitly stated it is not seeking confrontation with Frasers, urging shareholders to oppose Mike Ashley’s board appointment proposal.
- The fashion company argues Frasers is motivated by self-interest, aiming to undermine Boohoo’s stability.
- Boohoo recalls past instances where Frasers exerted pressure on other companies, hinting at a pattern of behaviour.
- Concerns were raised over Frasers’ stake in Asos, viewing their responses as dismissive towards shareholder protection.
- Boohoo firmly rejects Mike Ashley and Mike Lennon’s suitability for board positions, citing strong-arm tactics.
Boohoo has clearly articulated its position to its shareholders, emphasising that the call to vote against Mike Ashley’s appointment is not an act of aggression. Their stance is rooted in a broader concern that Frasers is prioritising its own commercial goals at the expense of Boohoo’s stability. This concern is underscored by Boohoo’s statement that Frasers’ ongoing campaign appears strategically designed to create instability within Boohoo.
The tension is not unprecedented; Boohoo references previous incidents where Frasers allegedly exerted undue influence on companies such as Studio Retail. Despite Frasers acquiring Studio Retail post-administration for a nominal fee, Boohoo highlights this as an example of Frasers’ forceful attempts to sway company leaderships, potentially aligning these moves with Frasers’ interests rather than those of all shareholders.
Additionally, Boohoo has reiterated its unease with Frasers’ substantial shareholding in Asos, which stands at 27%. This relationship has, according to Boohoo, led to credible concerns which were largely dismissed by Frasers in an open letter dated 21 November 2024. Boohoo points to the nonchalant dismissal of potential conflicts and shareholder competition as an insight into Frasers’ approach to corporate governance.
Asserting a staunch opposition, Boohoo has communicated to its shareholders that it staunchly rejects Frasers’ propositions, particularly the appointment of Mike Ashley or Mike Lennon to key positions within the board. Boohoo describes these efforts as employing ‘strong-arm tactics’ that are not conducive to fostering an environment of minority shareholder protection.
Boohoo steadfastly remains against Frasers’ board proposals, focusing on safeguarding its governance and shareholder interests.
