Boohoo shareholders advised to vote against appointing Mike Ashley to board
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A prominent shareholder advisory firm has advised Boohoo investors to reject Frasers Group's plans to overhaul the online retailer's leadership. Institutional Shareholder Services (ISS) said the Karen Millen owner's investors should vote against resolutions at the general meeting on 20 December that would make Frasers chair Mike Ashley and restructuring specialist Mike Lennon board members.
ISS said the two men have 'real conflicts of interest', noting that Lennon - a close ally of Ashley, has a 'history of working closely' with Frasers. It also accused Frasers, which owns Sports Direct and is Boohoo's largest shareholder, of providing a 'superficial view' of the company's financial results and 'no specific plans for change'.
The recommendation follows another open letter by Ashley published over the weekend where he blamed Boohoo's board for presiding over a 'catastrophic mess'. Pointing to Boohoo shares plunging by 90 per cent in the past five years, Ashley said the firm was suffering from 'panic-driven mismanagement' that is heavily impacting shareholder value and putting its future at risk.
Lambasting: Frasers Group boss Mike Ashley (pictured) published an open letter over the weekend where he blamed Boohoo's board for presiding over a 'catastrophic mess'. Ashley attempted to get himself appointed as the company's next chief executive after Boohoo announced in October that John Lyttle would stand down after five challenging years at the helm.
