Frasers to put forward new candidate for Boohoo representation

In the aftermath of Boohoo’s general meeting on December 20, when proposed candidates were declined a seat on the retailer’s board, Frasers Group has now released a statement noting the decision, yet reaffirming that it would continue pursuing representation.

In a regulatory filing, the Sports Direct owner said it “respects the view of the independent shareholders” and stated a reevaluation of its efforts. As such, the group announced that it would “put forward a highly qualified candidate in due course”, while continuing to anticipate that Boohoo’s board would “uphold their commitment without hesitation or delay”.

This begins the next chapter in the saga of Frasers and Boohoo’s boardroom battle, which came to a head last Friday during a meeting requisitioned by Frasers, a majority shareholder of Boohoo. During the meeting, shareholders were asked to vote on whether to appoint Frasers’ founder, Mike Ashley, and the group’s proposed director, Mike Lennon, to Boohoo’s board, with around 64 percent of the votes being against the proposals.

Frasers’ pursuit of representation comes in response to what the group has previously dubbed a “leadership crisis” at Boohoo, where revenue has continued to fall over the past year amid challenging market conditions. In October, Boohoo announced it would review its business structure, hinting at a possible sale of some of its assets, a plan Frasers adamantly disproved of. It was then that Ashley made his first bid to helm Boohoo, and the public spat between the two companies ensued.