Boohoo Responds to Mike Ashley’s Request for CEO Role

Boohoo has issued a response in light of an attempted takeover bid for its board by Mike Ashley, the founder of Frasers Group.

Recently, the retail leader shared an open letter requesting that the fast fashion firm appoint him as CEO, among other demands, labeling the current state of affairs as a “leadership crisis” stemming from the retailer’s “incompetence.”

Boohoo has raised concerns over governance related to Ashley’s potential participation on the board, highlighting his other business engagements.

“As shareholders are aware, Mr. Ashley owns a 73% stake in Frasers; additionally, Frasers holds a 23.6% share in Asos, both of which compete within markets comparable to Boohoo’s,” the company stated.

“These significant aspects must be carefully assessed by the board.”

The statement further remarked: “While the board is amenable to engaging in discussions about board representation with Frasers in a constructive manner, it has emphasized that any appointment must comply with appropriate governance to protect the company’s commercial interests and those of other shareholders.”

“Boohoo has sought assurances from Frasers on this issue, but those have yet to be provided.”

The company, which owns brands such as PrettyLittleThing and Debenhams, stated that selecting a new CEO to replace John Lyttle is a “critical board decision that requires thorough analysis and sound governance.”

Boohoo challenged Frasers’ portrayal of its £222 million debt refinancing agreement as “inaccurate and unfair” after the owner of Sports Direct criticized it as a “regressive move.”

In its response, Boohoo maintained: “The refinancing provides clarity regarding the company’s future requirements and is supported by its existing high street banks.”

Boohoo also indicated it had consulted with Frasers regarding its refinancing options and encouraged the group to propose any alternative plans, yet “none were presented.”

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