Boohoo has responded to Frasers Group’s open letter yesterday demanding to replace the company’s current CEO John Lyttle with the appointment of Mike Ashley.
Boohoo said in the statement: “Frasers’ wish for Mike Ashley to be appointed as a director and chief executive officer was first communicated by Frasers at an in-person meeting on the evening of Friday 18 October 2024, when Frasers sought to establish a 48-hour deadline for the board to confirm that it would proceed to make this appointment.”
It added: “This was the first occasion on which Frasers had identified its preferred board candidate and followed Frasers having formally ruled out Ashley for the role on 9 October 2024 and having previously and consistently indicated that its one nominee would perform a non-executive role.”
The statement continues: “As shareholders will be aware, Ashley is a 73 percent shareholder in Frasers; in addition, Frasers owns a 23.6 percent stake in Asos, and both Frasers and Asos operate in similar markets to Boohoo. These are important facts that need to be taken into account and carefully considered by the board.”
Boohoo further said that it is willing to discuss board representation with Frasers in a constructive manner. “Before any appointment can be made, appropriate governance will be required to protect the company’s commercial position and the interests of other shareholders. Boohoo has sought assurances from Frasers in this regard and they have not to date been provided,” the company said.
The statement also rejected Frasers description of Boohoo’s recent debt refinancing as “inaccurate and unfair.” “The company’s approach to its recent debt refinancing was discussed on numerous occasions with Frasers and its advisers. As part of those discussions Frasers were advised that the board would be pleased to consider any alternative proposals they might wish to present, but none were forthcoming,” Boohoo added.
