Shirebrook-based Frasers Group has said there is a “leadership crisis” at fashion retailer boohoo, proposing the solution is to make its founder Mike Ashley CEO.
Frasers, which is the largest shareholder in boohoo group, with 27% of the issued share capital, has sent an open letter to the Board calling for a meeting of shareholders to vote on appointing Mike Ashley as a director and CEO, as well as Mike Lennon, a restructuring expert, as a director.
It comes after boohoo announced that John Lyttle would be stepping down as CEO, following five years with the Group, and amidst declining revenue.
In its letter, Frasers critiqued the business’s Board, saying it has lost its ability to manage boohoo’s business and investments.
In a statement to the London Stock Exchange, Frasers added: “Frasers is requisitioning a general meeting of boohoo to appoint Mr. Mike Ashley as a director and CEO of boohoo and Mr. Mike Lennon as a director of boohoo, to take effect without delay. Frasers firmly believes that these appointments are in the best interests of boohoo, its shareholders and its stakeholders.
“The Board appointments proposed by Frasers are now the only way to set a new course for boohoo’s future. Frasers urges boohoo shareholders to vote in favour of its proposals.”
The boohoo Board is in the process of reviewing the content and validity of the requisitions with its advisers.
