Frasers to name fresh Boohoo board pick after Mike Ashley gets rejected

Share:
Frasers to name fresh Boohoo board pick after Mike Ashley gets rejected
Published: Dec, 23 2024 11:30

Frasers will propose a fresh candidate to join Boohoo’s board, after the retailer’s shareholders rejected the appointment of founder Mike Ashely last week. Boohoo shareholders rejected two resolutions, on Friday, at a general meeting in Manchester that would have appointed Ashley and his associate, insolvency expert Mike Lennon, to board positions.

Ashley's firm, which has been pushing for an urgent change of leadership at struggling Boohoo, said on Monday it ‘respects the views of the independent shareholders’, and would take up the offer of Frasers proposing an alternative candidate. It added: ‘We will put forward a highly qualified candidate in due course and fully expect Boohoo's board to uphold their commitment without hesitation or delay.’.

Boohoo shares are down by around 20 per cent over the last year and almost 90 per cent over the last five years, as the fast fashion retailer has suffered dwindling sales, soaring losses and an uncertain balance sheet. The group recently appointed Debenhams boss Dan Finely as Boohoo chief executive in efforts to put it back on track.

Boohoo shareholders on Friday rejected resolutions that would have appointed Mike Ashley to the retailer's board. But Frasers has accused Boohoo's bosses of overseeing 'large-scale value destruction and long-term and continued incompetence', as well as a failure to ‘meaningfully engage’ with shareholders.

Share:

More for You

Top Followed