Frasers Group urges full exit of Boohoo co-founder Kamani

• EasternEye
• 22 November, 2024

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By: EasternEye

FRASERS Group, holding a 27 per cent stake in Boohoo, is intensifying its efforts to remove Mahmud Kamani from the online retailer’s board.

This comes despite Kamani stepping down as chairman and being appointed executive vice-chair, with Tim Morris assuming the role of independent chairman.

Frasers argues Kamani’s continued involvement undermines governance reforms and strategic changes at Boohoo, which has struggled post-pandemic due to rising competition, increased returns, and supply chain issues, reported The Times.

A Frasers spokesperson said Kamani’s “grip on the company” remains firm and pointed to a “lack of transparency” in interim results and supply chain allegations as reasons for his removal.

The group has proposed shareholder meetings to oust Kamani and appoint Mike Ashley, its largest shareholder, and restructuring expert Mike Lennon to Boohoo’s board. Frasers claims these appointments would instill a “winning mentality” at the retailer.

Boohoo defended its recent leadership changes, including Morris’s appointment, which it says ensures independent oversight while allowing Kamani to focus on daily operations. The company has also appointed Dan Finley as its new chief executive, replacing John Lyttle, and raised £39.3 million to strengthen its position amid ongoing challenges, the newspaper reported.

In an open letter, Frasers accused Boohoo of disregarding shareholder interests and claimed the recent CEO appointment was a rushed attempt to block shareholder influence. Frasers said, “Mr Ashley plans to bring the same success to Boohoo that has more than doubled Frasers’ profits since 2016.”

Boohoo responded by accusing Frasers of acting in its own commercial interest and called Ashley a “conflicted” candidate for the board.

Boohoo also criticised Lennon’s association with Frasers, calling him unsuitable, The Times reported. The company reiterated its commitment to shareholder interests while denying it sought confrontation with Frasers.