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Boohoo shareholders vote to block Mike Ashley from joining board Boohoo shareholders vote to block Mike Ashley from joining board
(31 minutes later)
Chair hails ‘resounding vote of confidence’ as investors reject seats on the board for Sports Direct founder and associate Chair hails ‘resounding vote of confidence’ as investors reject Sports Direct founder and his associate Mike Lennon
Boohoo shareholders have blocked Mike Ashley and an associate from joining its board in a blow to the Sports Direct founder’s effort to control the struggling online fashion retailer. Boohoo shareholders have blocked Mike Ashley and an associate from joining its board in a blow to the Sports Direct founder’s attempt to control the struggling online fashion retailer.
Investors representing almost two-thirds of Bohoo’s stock – 64% – voted against appointing Ashley and Mike Lennon at a special meeting on Friday morning called by Ashley’s Frasers Group. Investors representing 64% of Bohoo’s stock voted against appointing Ashley and Mike Lennon at a special meeting on Friday morning called by Ashley’s Frasers Group.
Boohoo chair Tim Morris said that shareholders had given “a resounding vote of confidence in our board” at the special meeting. The chair of Boohoo, Tim Morris, said shareholders had given “a resounding vote of confidence in our board” at the meeting.
He said 99% of those that voted – excluding the 27% stake in Boohoo controlled by Ashley’s Frasers Group stake – had chosen to block Ashley’s appointment. He said 99% of those that voted – excluding the 27% stake in Boohoo controlled by Ashley’s Frasers Group – had chosen to block Ashley’s appointment.
Morris said Boohoo would now “like to get on with running our business” – although it is not clear how Frasers will respond to the vote. Morris said Boohoo would now “like to get on with running our business”, although it is not clear how Frasers will respond to the vote.
Boohoo became a target after its value plunged from its peak during the Covid-19 pandemic, as the online shopping bubble burst when spending moved back to the high street. Boohoo became a target after its value plunged from its peak during the Covid-19 pandemic to a low when the online shopping bubble burst as spending moved back to the high street.
Further potential conflict lies ahead. Frasers has already called a second meeting – set for 21 January – to ask shareholders to oust Boohoo’s founder and vice-chair Mahmud Kamani. Further potential conflict lies ahead. Frasers has already called a second meeting – for 21 January – to ask shareholders to oust the Boohoo founder and vice-chair, Mahmud Kamani.
Ashley had sought to become chief executive of Boohoo but was blocked by the company from putting that proposal to shareholders. Ashley had sought to become the chief executive of Boohoo but was blocked by the company from putting that proposal to shareholders.
He then offered to “work collaboratively” with new Boohoo boss Dan Finley if he won a board post. However, he has criticised Kamani for being an “egotistical founder who has an unhealthy grip on the board”. He also said Boohoo was “in desperate need of the guidance I can provide”. He then offered to “work collaboratively” with the new Boohoo boss, Dan Finley, if he won a board post. However, he has criticised Kamani for being an “egotistical founder who has an unhealthy grip on the board”. He also said Boohoo was “in desperate need of the guidance I can provide”.
Finley, who was promoted from his role as head of Boohoo’s Debenhams online department store after driving up growth there, said he was “really excited about the opportunities ahead”. Finley, who was promoted from his role as head of Boohoo’s Debenhams online department store after driving growth there, said he was “really excited about the opportunities ahead”.
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Boohoo has said Frasers could put forward an alternative to Ashley to represent its interests. However, Morris said any candidate would have to meet certain conditions to ensure there was not a conflict of interest given Frasers’ position as a competitor.Boohoo has said Frasers could put forward an alternative to Ashley to represent its interests. However, Morris said any candidate would have to meet certain conditions to ensure there was not a conflict of interest given Frasers’ position as a competitor.
Ashley has made Boohoo the latest in a long line of targets for his corporate empire which includes a plethora of brands ranging from House of Fraser and Flannels to Evans Cycles and Game UK. Ashley has made Boohoo the latest in a long line of targets for his corporate empire which includes brands ranging from House of Fraser and Flannels to Evans Cycles and Game UK.
Morris has said Ashley and Lennon were “not appropriate candidates to join the board in any circumstances” because of “obvious conflict points”.Morris has said Ashley and Lennon were “not appropriate candidates to join the board in any circumstances” because of “obvious conflict points”.