LONDON - In the ongoing corporate tussle between boohoo Group plc (AIM: BOO) and Frasers Group plc, boohoo has addressed the recent claims by Frasers regarding board representation and the CEO appointment process. The online fashion group has clarified its stance on the issues raised by Frasers in a letter dated October 24, 2024.
boohoo's board has stated that it has not delayed or dismissed Frasers' requests for board representation. The matter came to the forefront on October 18, 2024, when Frasers proposed Mike Ashley, a major shareholder in Frasers, for the role of Director and CEO of boohoo. This was a reversal from Frasers' previous position on October 9, 2024, when it had ruled out Ashley for the role and suggested a non-executive nominee.
The Board emphasized the need for careful consideration of Ashley's candidacy, given his significant stake in Frasers and the fact that Frasers owns a 23.6% stake in ASOS (LON:ASOS) plc, a direct competitor. boohoo has expressed its willingness to discuss board representation with Frasers but insists on appropriate governance measures to safeguard the interests of the company and all shareholders. Frasers has yet to provide the necessary assurances demanded by boohoo.
Regarding the CEO role, boohoo reaffirmed that John Lyttle remains the CEO while the Board oversees a thorough selection process for his successor, which began before the discussions with Frasers.
Additionally, boohoo has refuted Frasers' characterization of its debt refinancing as "inaccurate and unfair." The company defended the refinancing, stating it ensures future certainty and is backed by its consortium of high street banks. boohoo had previously invited Frasers to propose alternative refinancing strategies, but no proposals were made.
The company is set to publish its interim results in November and has advised shareholders to refrain from taking action based on Frasers' proposals. This statement is based on a press release issued by boohoo Group plc.
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