Boohoo has issued a response following an attempted boardroom coup by Frasers Group founder Mike Ashley.
The retail entrepreneur demanded the fast fashion giant appoint him as CEO in an open letter this week among other requests as a solution to what he termed a “leadership crisis” driven by the retailer’s “incompetence”.
Boohoo raised governance concerns about Ashley’s possible involvement on the board given his other investments.
”As shareholders will be aware, Mr Ashley is a 73% shareholder in Frasers; in addition, Frasers owns a 23.6% stake in Asos, and both Frasers and Asos operate in similar markets to boohoo.
“These are important facts that need to be taken into account and carefully considered by the board.
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It continued: ”Whilst the board remains willing to discuss board representation with Frasers in a constructive manner, it has been clear with Frasers that before any appointment can be made, appropriate governance will be required to protect the company’s commercial position and the interests of other shareholders.
“Boohoo has sought assurances from Frasers in this regard and they have not to date been provided.”
The PrettyLittleThing and Debenhams owner said the CEO appointment to replace John Lyttle is a “critical board decision which requires careful consideration and proper governance”.
Boohoo claimed Frasers’ characterisation of its £222m debt refinancing deal is “inaccurate and unfair”, after the Sports Direct owner accused it of taking a “step backward”.
In its response, the retailer said: “The refinancing provides certainty for the company around its future requirements and is supported by its existing group of high street banks.”
Boohoo said it had discussed its refinancing options with Frasers and had suggested the group put forward any alternative proposals but “none were forthcoming”.
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