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Boohoo dismisses criticism from Frasers Group as ‘unfair and inaccurate’


Boohoo, the online fashion retailer, has responded to Frasers Group’s attempt to install Mike Ashley as its chief executive, calling the criticisms from Frasers “inaccurate and unfair.” Frasers, which owns 27% of Boohoo, wrote a letter to the Boohoo board criticizing their management and debt refinancing strategy.

Boohoo defended its decisions, stating that the refinancing deal would provide certainty around its future and that it had discussed the matter with Frasers multiple times. The company also pointed out that Frasers owns a stake in Boohoo’s rival Asos, which should be considered by the board.

Boohoo faced challenges during the COVID-19 pandemic, but its sales soared as more people turned to online shopping. However, the company’s share price has dropped, resulting in job cuts and losses. Frasers believes that Mike Ashley is the ideal candidate for the chief executive role and has also suggested appointing restructuring expert Mike Lennon as a director.

The appointment of a new chief executive is a crucial decision for Boohoo, and the process is currently underway. The board is open to discussing a director appointment with Frasers but emphasized the need for proper governance.

Boohoo’s shares rose by 3% following the response to Frasers’ letter. Frasers Group has not yet commented on the matter. Umar Kamani, the founder of PrettyLittleThing and son of Boohoo co-founder Mahmud Kamani, had been speculated to take over as chief executive before the recent developments.

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Photo credit www.theguardian.com

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