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In an official communication, Frasers Group, which owns Sports Direct and House of Fraser expressed respect for the perspective of independent shareholders and indicated a reassessment of its approach to having representation on Boohoo's board.
Frasers Group continues quest for Boohoo board representation
“Frasers takes note of boohoo's invitation to propose a board candidate other than Ashley or Lennon. 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,” the statement read.
UK online fast fashion retailer Boohoo declined Just Style's request for comment, however this development ensued after Boohoo disclosed its shareholders had "overwhelmingly" rejected the nominations of Frasers Group's founder Mike Ashley and Frasers Group's restructuring expert Mike Lennon as directors of the fashion brand.
The voting results from the 20 December General Meeting revealed that only 36% supported Frasers’ Mike Ashley for company director, with 63% opposing, while Mike Lennon’s directorship bid also saw identical percentages in favour and against.
A week before the vote, Boohoo had implored its investors to withstand Frasers Group’s pressure, which had issued another public letter advocating for Ashley and Lennon to join its board.
Frasers articulated in its correspondence a belief that “these appointments are in the best interests of Boohoo, all of its shareholders, and all of its stakeholders”.
Previously, Boohoo had extended an offer to Frasers Group for a board seat, though explicitly excluding Ashley. This was amid an escalating dispute between the two entities over recent months.
The dispute between the two parties began with Frasers' proposal to appoint Ashley as CEO at online fashion company Boohoo. However, this move was abruptly halted when Boohoo appointed Dan Finley, former head at Debenhams — a part of its group — in November.
In retaliation, Frasers dispatched a letter to Boohoo’s board, castigating it for its “utter disregard” of shareholder interests following what it described as a “hurried” CEO appointment and a “reckless” refinancing strategy, insisting on guarantees that no asset disposals would proceed without shareholder consent.
Boohoo sells London-based office, appoints to Dan Finley to board of directors
On 23 December, Boohoo announced that Dan Finley had officially been appointed as a director of the company and formally joined the board of directors.
Last week, the company also finalised the divestiture of its Soho-based London office situated on Great Pulteney Street. Global Holdings UK, a standalone real estate fund, acquired the site for a total cash transaction of £49.5m ($61.36m).