Billionaire Mike Ashley denied Boohoo board seat after boardroom battle
Mike Ashley's Frasers Group has been engaged in a war of words with the online fashion business, with the billionaire accusing the Boohoo board of "gross mismanagement".
Friday 20 December 2024 17:22, UK
British billionaire Mike Ashley has been denied a seat on the board of fast-fashion business Boohoo.
A majority of Boohoo shareholders rejected efforts by the Sports Direct founder at a meeting in Manchester on Friday, with 64% of votes opposing the appointment.
A similar number also denied restructuring expert Mike Lennon a seat on the board.
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Mr Ashley's Frasers Group is the biggest single shareholder in Boohoo, with a 27% stake in the online fashion business.
It's been engaged in a war of words with Boohoo, writing an open letter criticising the business and seeking executive changes, including the appointment of Mr Ashley as chief executive - a demand which has so far been unsuccessful.
Company boards steer the direction of businesses and play a key oversight role.
Mr Ashley has said he had hoped to turn around the online shop which, like many similar operations, has struggled financially since the end of the COVID pandemic.
Item returns, supply chain problems and competition from rivals like Shein and Temu have weighed on the firm's finances.
Its share price has fallen 90% in the last five years, with Mr Ashley accusing the board of "gross mismanagement".
He said he could bring "fresh ideas" to the business.
But Boohoo opposed the appointment of Mr Ashley and Mr Lennon, citing "irreconcilable conflicts of interest".
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It said it is not opposed to a Frasers Group seat on the board, but wanted a different candidate.
After the vote result was announced, Frasers Group shares witnessed the biggest rise of all companies on the FTSE 100 index of most valuable companies on the London Stock Exchange, up more than 3%.
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Boohoo stock values, however, were relatively unchanged on Friday afternoon.
Frasers Group has been contacted for comment.