UK's Frasers Demands Appointment of Mike Ashley as Boohoo CEO

FILE PHOTO: A woman poses with a smartphone showing the Boohoo app in front of the Boohoo logo on display in this illustration taken September 30, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

British sportswear retailer Frasers Group called on Thursday for a general meeting of Boohoo to appoint Mike Ashley as a director and CEO of the struggling online fashion retailer, Reuters reported.
Frasers, controlled by British businessman Ashley, is the biggest shareholder in Boohoo with an about 27% stake.
Boohoo said last week that its CEO John Lyttle would step down, as the group announced a strategic review that could see it broken up. It also agreed a debt refinancing with its lenders.
Frasers sent an open letter dated Oct. 23 to the board of the Manchester-based firm, asking for the appointment of Ashley and restructuring professional Mike Lennon as directors to take effect "without delay.”
"The board appointments proposed by Frasers are now the only way to set a new course for Boohoo's future," Frasers said in a statement, urging Boohoo shareholders to back its proposals.
Boohoo said in a separate statement that its board was reviewing the content and validity of the requisitions with its advisers.
Shares in Boohoo rose nearly 4% in early trade. Frasers shares were down marginally by 0703 GMT.
Frasers also opposed the terms of the debt refinancing and said that no disposal of Boohoo should be made without first consulting the Sports Direct owner and all other major shareholders.
Mahmud Kamani, the co-founder and executive chairperson of Boohoo, is the second biggest shareholder with a 12.6% stake in the firm, according to LSEG data.
Kamani along with Carol Kane founded Boohoo in 2006 and listed it on the London stock exchange in 2014.
The fashion retailer, like its UK peer ASOS, had benefited from a pandemic boom in online shopping but has struggled ever since with supply chain problems, higher product returns, competition from rivals such as Shein and Temu and subdued consumer demand.
Frasers walked away from making a formal offer for British luxury handbag maker Mulberry on Wednesday after its two proposals were rejected.