Boohoo accuses Frasers Group of ‘self interest’ amid Mike Ashley row
Frasers Group had called Boohoo ‘desperate’ after it declined its attempts to install founder Mr Ashley as chief executive.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Boohoo has rebuffed claims by Frasers Group of disregarding its shareholders, accusing Frasers of “promoting its own commercial self-interest” at the expense of fellow investors.
The online retailer recently appointed former Debenhams boss Dan Finley as its new chief executive, something Frasers, a major shareholder in Boohoo, said was “rushed”.
Frasers had been pushing for Boohoo to install its founder Mike Ashley at the helm after the previous chief executive officer stepped down in October.
Also in October, Boohoo announced plans for a strategic review, sparking speculation about a potential break-up of the business.
Boohoo has also repeatedly asked for, and has been promised, non-public information in relation to Mike Ashley's interests and role in competing businesses. This information has not yet been provided either
An open letter from Frasers on Wednesday accused Boohoo of trying to “block the say of shareholders” and demanded that Boohoo “will not make a disposal of any asset or business line, in whole or in part, without prior shareholder approval”.
Boohoo’s response on Thursday said it “expects that the ongoing review of options will take several months and the board will update shareholders with full transparency at the appropriate times”.
Addressing Mr Ashley’s attempts to become Boohoo chief executive officer, the company said it “has been clear with Frasers that it will only offer a seat for an appropriate non-executive director”.
It also pointed to previously expressed governance concerns around appointing Mr Ashley, given that Frasers also holds a significant stake in rival Asos.
The update said: “Boohoo has repeatedly sought assurances from Frasers in this regard and none have been provided.
“Boohoo has also repeatedly asked for, and has been promised, non-public information in relation to Mike Ashley’s interests and role in competing businesses. This information has not yet been provided either.”
Boohoo said Frasers was using its position as a large shareholder to “promote its own commercial self-interest … at the expense of the other shareholders”.
Frasers Group has been approached for comment.