- Boohoo investors cast 63.2% of votes against expelling Mahmud Kamani
- Frasers previously tried to get Mike Ashley appointed to Boohoo’s board
Frasers Group’s attempts to overhaul the leadership of Boohoo have failed again after shareholders chose to keep its co-founder on the board.
Boohoo investors cast 63.2 per cent of votes against a resolution calling for Mahmud Kamani to be removed as a director of the online fashion retailer at a general meeting on Tuesday.
Proxy adviser Glass Lewis last week recommended shareholders oppose the motion brought by Frasers, saying Boohoo had ‘initiated significant actions’ to try and revive the business.
These have included the launch of a business review, the strengthening of its balance sheet, and the selection of Debenhams boss Dan Finley as chief executive.
It said these changes ‘should enable the company to retain Mr Kamani’s institutional knowledge and expertise while empowering new leadership to undertake initiatives that will likely be needed to improve the company’s performance.’
Today’s vote comes a month after Boohoo investors rejected proposals at another general meeting in Manchester to put Mike Ashley and restructuring specialist Mike Lennon on the board.
Not approved: Boohoo investors cast a majority of votes against a resolution calling for Mahmud Kamani (pictured) to be removed as a director of the online fashion retailer
Tim Morris, chair of Boohoo, said the ballot ‘provides the board with a clear mandate to continue with the work of creating maximum value for all shareholders.’
Frasers, which owns a 27 per cent stake in Boohoo, has publicly urged the group to appoint the two men since last October.
In an open letter published that month, it accused the firm’s current bosses of ‘long-term mismanagement’ as well as ‘large-scale value destruction.’
Over the past five years, Boohoo shares have plunged by around 90 per cent amid a massive slowdown in online clothes sales, cost-of-living pressures, and competition from Chinese rivals like Shein and Temu.
In the six months ending August, the business reported its turnover slumped by 15 per cent to £619.8million, while its adjusted pre-tax losses trebled to £27.4million.
However, Boohoo opposed Ashley and Lennon’s respective appointments, citing ‘irreconcilable conflicts of interest,’ like Frasers’ 21.1 per cent stake in rival retailer ASOS.
It also accused the retail giant, whose brands range from Sports Direct to Flannels and Jack Wills, of focusing on its own ‘commercial self-interest’ at the expense of fellow investors.
A week before the 20 December vote, the PrettyLittleThing owner did offer Frasers a seat on its board, as long as the occupant was not Ashley or Lennon, but Frasers refused to budge.
Following the latest vote, Dan Finley said Boohoo wants to ‘put this disruption and distraction behind us. Our focus is on maximising value for all shareholders.’
Boohoo Group shares were 2.5 per cent higher at 30.4p on late Tuesday afternoon.
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