The board of Boohoo has hit back at Frasers’ today and accused the company of a “selective approach” to protecting shareholders, as it offered the firm a board seat so long as Mike Ashley or Mike Lennon do not take it.
Frasers Group claimed in an open letter on Thursday that Boohoo’s opposition to Mike Ashley and Mike Lennon joining its board “boils down” to fears it would “dilute [executive vice chair Mahmud Kamani] influence”.
However, in a statement to the market this morning, Boohoo said the letter made it clear that “when it comes to protecting minority shareholders, Frasers will decide which commitments it wishes to give and on what terms”.
It stated “this selective approach is consistent” with the contents of Frasers’ letter to shareholders in late November.
The Boohoo’s board stated it “wishes to make it clear that these are issues which need to be fully addressed for the protection of all shareholders”.
“It is not for Frasers to pick and choose how it does so in order to suit its own commercial interests or wider corporate strategy in relation to boohoo and its assets,” Boohoo said.
The board again urged its shareholders in its Friday response to vote against the plan to appoint Ashley and Lennon to its board.
Back on Monday, Ashley accused Boohoo’s board of “gross mismanagement” and having “no clear strategy” to halt a decline, which has seen the share price fall 90 per cent over the last five years.
Commenting on today’s response, Tim Morris, boohoo Group Chair, said “the Board has consistently said that due to obvious conflict points and because of their historical ties to Frasers, Mike Ashley and Mike Lennon are not appropriate candidates to join the Board in any circumstances, whatever commitments are offered.”
“Notwithstanding that, Frasers continues to refuse to agree to a number of the key protections that the Board would require should an appropriate representative be nominated.”
He added that “these are key issues which need to be addressed for the protection of all Shareholders and it is not for Frasers to pick and chose which commitments it will give.”