Attempts by Frasers Group to install founder Mike Ahsley on the board of online fashion specialist Boohoo have been rebuffed.
At a meeting this morning, Boohoo shareholders voted against resolutions to appoint Ashley and restructuring expert Mike Lennon to the retailer’s board.
They rejected the pair’s election by more than 60% in each case, representing a setback to Frasers Group’s ambitions to shape the future of Boohoo, in which it is a leading shareholder, and that it says has chronically underperformed.
Boohoo chair Tim Morris said: “I would like to thank our shareholders for their support of the board. We remain focused on delivery of our business review with the objective of unlocking and maximising value for all shareholders.”
New Boohoo chief executive Dan Finley said: “Our group is a dynamic business, with great brands and extremely talented people, underpinned by best-in-class infrastructure. Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders.
“I am super-energised to realise the significant opportunities I see for this business. I continue to believe this group is materially undervalued. Our most important work is ahead of us and we will drive value for all shareholders.”
Frasers Group subsequently said that it noted the result of the meeting and ”respects the views of the independent shareholders”.
Frasers Boohoo’s ”invitation to propose a board candidate” other than Ashley or Lennon and said: ”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.”
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