The boohoo drama continues following Mike Ashley’s suggested move to the CEO role of the cash-strapped business. It had been mooted that Umar Kamani was to be shooed into the CEO seat which is being vacated by John Lyttle who is completing a five-year term in the role.
Mike Ashley has heavily criticised boohoo’s board for recent poor performance and for having agreed to a costly refinancing arrangement. Also, that the board had failed to respond to initial approaches from Frasers.
The Boohoo board responded, saying, “The board has neither delayed responding to Frasers’ requests for board representation nor ignored them.
“Frasers’ wish for Mike Ashley to be appointed as a Director and Chief Executive Officer was first communicated by Frasers to boohoo at an in-person meeting on the evening of Friday 18th October 2024, when Frasers sought to establish a 48-hour deadline for the board to confirm that it would proceed to make this appointment.”
“As shareholders will be aware, Mr Ashley is a 73 per cent shareholder in Frasers; in addition, Frasers owns a 23.6 per cent stake in ASOS plc and both Frasers and ASOS operate in similar markets to boohoo. These are important facts that need to be taken into account and carefully considered by the Board.”
Meanwhile we anticipate a strong retort from Frasers and we understand that it has appointed advisors to convince other shareholders of the merits of its mission.
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