Boohoo shareholders vote to block Mike Ashley from joining board
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Chair hails ‘resounding vote of confidence’ as investors reject seats on the board for Sports Direct founder and associate. Boohoo shareholders have blocked Mike Ashley and an associate from joining its board in a blow to the Sports Direct founder’s effort to control the struggling online fashion retailer.
![[Mike Ashley.]](https://i.guim.co.uk/img/media/005a9c23072ba5cd7e9721c948915528755e5588/217_51_2773_1664/master/2773.jpg?width=120&dpr=1&s=none&crop=none)
Investors representing almost two-thirds of Bohoo’s stock – 64% – voted against appointing Ashley and Mike Lennon at a special meeting on Friday morning called by Ashley’s Frasers Group. Boohoo chair Tim Morris said that shareholders had given “a resounding vote of confidence in our board” at the special meeting.
He said 99% of those that voted – excluding the 27% stake in Boohoo controlled by Ashley’s Frasers Group stake – had chosen to block Ashley’s appointment. Morris said Boohoo would now “like to get on with running our business” – although it is not clear how Frasers will respond to the vote.
Boohoo became a target after its value plunged from its peak during the Covid-19 pandemic, as the online shopping bubble burst when spending moved back to the high street. Further potential conflict lies ahead. Frasers has already called a second meeting – set for 21 January – to ask shareholders to oust Boohoo’s founder and vice-chair Mahmud Kamani.
Ashley had sought to become chief executive of Boohoo but was blocked by the company from putting that proposal to shareholders. He then offered to “work collaboratively” with new Boohoo boss Dan Finley if he won a board post. However, he has criticised Kamani for being an “egotistical founder who has an unhealthy grip on the board”. He also said Boohoo was “in desperate need of the guidance I can provide”.
