- Sunday, November 03, 2024
Finley, previously the CEO of Debenhams since 2022, has taken over immediately from John Lyttle
By: Pramod Thomas
ONLINE fashion retailer Boohoo has appointed Dan Finley as its new chief executive amid an ongoing struggle for control with rival retail magnate Mike Ashley.
Finley, previously the CEO of Debenhams since 2022, has taken over immediately from John Lyttle, who led the fast-fashion company since 2019, the Telegraph reported.
During Lyttle’s tenure, Boohoo faced a sharp 90 per cent drop in share value, driven by supply chain scrutiny and stiff competition from the Chinese retailer Shein.
Finley’s appointment comes as Boohoo undergoes significant changes. A review of its portfolio, including brands like Debenhams, Karen Millen, and PrettyLittleThing, is underway, and a potential brand selloff has been hinted.
The company has also been managing financial strains, recently securing a £222 million refinancing to bolster its operations.
Ashley, the billionaire behind Sports Direct and Frasers Group, has taken advantage of the current instability, trying to increase his influence at Boohoo.
Holding a 27 per cent stake, Ashley has openly criticised Boohoo’s leadership, accusing co-founder and executive chairman Mahmud Kamani and other board members of “incompetence” and “destroying value.”
He has called for his own appointment as CEO, a move Boohoo’s board is actively resisting.
In response to Ashley’s criticisms, Boohoo defended its leadership, calling his claims “inaccurate and unfair.” The company also advised shareholders to wait for further updates regarding Ashley’s attempted takeover, urging them to hold off on any actions.
Despite Ashley’s pressure, Boohoo’s board said that appointing a new CEO needed careful planning and adherence to proper governance.
Finley’s success at Debenhams, which Boohoo acquired out of administration in 2021, was a key factor in his selection.
His achievements there included transforming the once-troubled department store into a more sustainable, high-growth online marketplace, according to reports.
Alistair McGeorge, Boohoo’s deputy chairman, expressed confidence in Finley’s capabilities, highlighting his strong leadership in digital retail. Before Debenhams, Finley spent a decade at JD Sports, helping it become a FTSE 100 company, further establishing his credentials in the retail sector.
Finley shared his excitement for the future of Boohoo. He said, “I am excited at the opportunities I see ahead. We have brilliant brands and people, underpinned by best-in-class infrastructure. Under my leadership, we have had great success with Debenhams and I look forward to exploring opportunities to extend this business model across the group.
“I will dedicate myself totally to working with my colleagues to unlock significant value for all shareholders.”
Boohoo, which began as a fast-fashion brand targeting young, budget-conscious buyers, has seen significant growth in the past.
It was co-founded by Kamani in 2006 and listed on the London stock exchange in 2014. However, its fortunes have waned since peaking in 2020.
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