Frasers will propose a fresh candidate to join Boohoo’s board, after the retailer’s shareholders rejected the appointment of founder Mike Ashely last week.
Boohoo shareholders rejected two resolutions, on Friday, at a general meeting in Manchester that would have appointed Ashley and his associate, insolvency expert Mike Lennon, to board positions.
Ashley’s firm, which has been pushing for an urgent change of leadership at struggling Boohoo, said on Monday it ‘respects the views of the independent shareholders’, and would take up the offer of Frasers proposing an alternative candidate.
It added: ‘We will put forward a highly qualified candidate in due course and fully expect Boohoo’s board to uphold their commitment without hesitation or delay.’
Boohoo shares are down by around 20 per cent over the last year and almost 90 per cent over the last five years, as the fast fashion retailer has suffered dwindling sales, soaring losses and an uncertain balance sheet.
The group recently appointed Debenhams boss Dan Finely as Boohoo chief executive in efforts to put it back on track.
Boohoo shareholders on Friday rejected resolutions that would have appointed Mike Ashley to the retailer’s board
But Frasers has accused Boohoo’s bosses of overseeing ‘large-scale value destruction and long-term and continued incompetence’, as well as a failure to ‘meaningfully engage’ with shareholders.
For its part, Boohoo accuses Frasers of pursuing self interest at the expense of other shareholders.
In a separate statement, Boohoo on Monday also announced the sale of its London office, with he proceeds used to pau off a loan due for repayment in August next year.
The group has agreed the £49.5million cash sale of the Great Pulteney Street, Soho office to property fund Global Holdings UK.
Boohoo said: ‘The action taken to dispose of this non-core and non-strategic asset will further strengthen the company’s balance sheet.
‘This will leave the business with a £125million revolving credit facility which is sufficient for its needs going forward.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
