Boohoo has warned that if Frasers Group (FG) should ‘win’ the fight over the future management of its struggling online business it could result in a decline such as that of Studio Retail which FG acquired out of administration early in 2022.
A general meeting has been called for the morning of 20th December. Boohoo is encouraging its shareholders to reject FG’s proposal to remove Mahmud Kamani, its executive chairman, from the business he founded and replace him on the board with Mike Ashley and Mike Lennon.
Boohoo’s directors own 14.12 per cent of the company’s shares, with FG owning close to 30 per cent.
Market watchers believe this ongoing battle could go either way, citing the catalogue of widespread adverse publicity around Boohoo’s supply chain and its treatment of the factories that produce its low-end fashion lines, measured against Mike Ashley’s pursuit of an end game that will bolster FG’s position in the overall market.
In further news, there is speculation that Boohoo’s proposed sale of its London offices will not now go ahead with the party it had agreed to sell to.
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