Frasers Group chief Mike Ashley has lashed out at Boohoo management in his bid for a seat on the struggling fashion retailer’s board.
In an open letter, Ashley vowed to turn around the London-listed company, arguing that it was underperforming with “no clear strategy to halt the decline”.
“As a board member, I would bring the fresh ideas, constructive support, and the much-needed accountability Boohoo desperately needs,” said the billionaire.
Ashley, who owns 27 per cent of Boohoo’s shares through Frasers Group, was recently thwarted from becoming the company’s CEO when former Debenhams chief Dan Finley was appointed to the role.
However, investors will be able to vote on whether to appoint Ashley, as well as restructuring specialist Mike Lennon, to the board on 20 December.
In its latest half-year results, Boohoo announced that revenue had fallen 15 per cent, while adjusted operating profit fell 10.5 per cent and net debt increased by over £100m.
As the firm’s financial difficulties have become more apparent, Ashley has been publicly targeting the firm, with rows between management and the billionaire spilling out into the public.
Last month, Boohoo accused Ashley and Frasers Group of attempting “to exert influence over the board’s refinancing, business review and appointments to the board for the good of themselves alone, and are acting in their own self-interest”.
In his letter, Ashley confirmed that he met CEO Finley last week in an attempt to work “collaboratively” on a turnaround, but disagreements clearly remain.
“The recent game of musical chairs – appointing Dan Finley as CEO, Mahmud Kamani as executive vice chairman and Tim Morris as chairman – is the epitome of chaos, a desperate attempt to mask dysfunction at the top,” he said.
Ashley also stressed that he does not want Boohoo to sell Debenhams, adding that Boohoo must avoid selling off its assets on the cheap and Frasers’ commitment to support the company with its financing issues “will avoid the need for a fire sale”.
“Boohoo shareholders deserve transparency, decisive action and real results – not more excuses,” he concluded.