Mike Ashley demands a leadership role at Boohoo, citing urgent issues.
- Ashley, owning 27% of Boohoo, requests to become CEO and director.
- Frasers Group calls for an immediate meeting to address leadership concerns.
- CEO John Lyttle’s departure intensifies leadership challenges at Boohoo.
- Frasers criticises Boohoo’s financial strategy amidst declining performance.
In an open letter to Boohoo’s board, Mike Ashley has insisted on being appointed as chief executive of the fashion retailer. Holding a 27% stake, Ashley emphasises his potential role in addressing the company’s pressing leadership issues. Controlling Frasers Group, Ashley has pushed for a general meeting to consider his appointment and has also nominated Kroll Advisory’s Mike Lennon as a director.
Recent developments, including the resignation of current CEO John Lyttle, underscore what Ashley describes as a ‘leadership crisis’ within Boohoo. Frasers Group has accused the Boohoo board of failing to engage meaningfully regarding Ashley’s proposed directorship and insists on the urgency of resolving these leadership challenges.
Frasers highlights Boohoo’s concerning financial track record, with a 36.5% fall in sales over the past three years. The retailer’s share price has also dropped significantly, aggravating the situation. The group stresses the need for immediate management changes to rectify the declining business performance.
Amid these discussions, Boohoo’s recent £222 million debt refinancing has come under scrutiny. Frasers has labelled this financial move as insufficient and a regression for the company, expressing grave concerns about its short-term nature and cost. The group suggests that alternative financial strategies should have been considered.
With an eye on Boohoo’s future, Frasers has warned against any major business disposals without full consultation with all significant shareholders, citing a lack of cooperation from Boohoo’s board in these critical financial and operational discussions.
The situation remains tense as both parties await further developments on the proposed leadership changes.
