Boohoo hits back at Frasers after Mike Ashley demands board seat

Boohoo's board has responded to Frasers' latest comments, accusing the company of a "selective approach" to safeguarding shareholders as the battle between the firms goes on. The Manchester-based online fashion retailer offered Frasers a seat on its board, provided neither Mike Ashley nor Mike Lennon occupy it.

In an open letter on Thursday, Frasers Group argued that Boohoo's resistance to Ashley and Lennon joining its board was primarily due to concerns the move would "dilute" the influence of executive vice chair Mahmud Kamani. However, in a market statement released this morning, Boohoo countered that “when it comes to protecting minority shareholders, Frasers will decide which commitments it wishes to give and on what terms.”

This "selective" approach, Boohoo claimed, aligns with the contents of Frasers' late November letter to shareholders. Boohoo's board emphasised the need for these issues to be fully addressed for the benefit of all shareholders, adding that “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 reiterated its call for shareholders to reject the proposal to appoint Ashley and Lennon to its board, as reported by City AM. Earlier this week, Ashley accused Boohoo's board of "gross mismanagement" and lacking a clear strategy to arrest a decline that has seen the share price plummet 90 per cent over the past five years.

Tim Morris, Chair of boohoo Group, said today: "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 concluded by saying, "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."