Boohoo has snubbed the demands of its largest shareholder by appointing former JD Sports and current Debenhams boss Dan Finley as its new group chief executive.
The move comes a week after Sports Direct founder and majority Boohoo shareholder Mike Ashley demanded to be made Boohoo chief executive in order to help the struggling business “set [a] new course” following news that John Lyttle would be stepping down.
In an open letter, Frasers Group, which owns Sports Direct, said: “There is no stronger candidate for CEO who has the experience and abilities of Mr Ashley and who is in a position to replace Mr Lyttle as soon as possible” and called for Boohoo shareholders to put the issue to a vote.
However, today Boohoo has announced that it is has appointed Debenhams chief executive Dan Finley to the role, in recognition of “the phenomenal success that Debenhams has enjoyed and reflects the evolution in strategic direction of the group”.
Finley joined Debenhams in January 2022, following the brand’s acquisiton out of administration by Boohoo.
Boohoo said under his leadership Debenhams has been “transformed into Britain’s leading online department store” with an annual run rate of £800m “through a capital-light, cash generative and highly profitable marketplace model”.
It added that Debenhams has “significant brand awareness in the UK” and has been “successfully repositioned, creating a community of 10,000 brands across fashion, home and beauty, all attracted to the site by Debenhams’ millions of active customers”.
Prior to joining Debenhams, Finley spent a decade as group multichannel director at Frasers rival JD Sports, helping the brand become a “global multichannel leader” and enter the FTSE 100.
Boohoo group deputy chairman Alistair McGeorge said: “The board of Boohoo was unanimous in its decision to appoint Dan Finley as CEO. Dan is one of the outstanding leaders in a new generation of digital retailers. Dan and his team have successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth marketplace.
“Before Debenhams, Dan had a track record of phenomenal success in online retail during his 10 years at JD Sports. The board looks forward to working with him, as we continue the review of options to unlock and maximise shareholder value.”
Finley said: “I am excited at the opportunities I see ahead as I become CEO of Boohoo Group. We have brilliant brands and people, underpinned by best-in-class infrastructure. Under my leadership, we have had great success with Debenhams and I look forward to exploring opportunities to extend this business model across the Group. I will dedicate myself totally to working with my colleagues to unlock significant value for all shareholders.”
In Finley’s announcement, Boohoo said the board will be “writing to shareholders in relation to [Frasers’] proposals in due course,” adding “until then, shareholders are strongly advised to take no action in respect of the proposals”.
No comments yet