Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

boohoo responds to Frasers' board representation bid

EditorFrank DeMatteo
Published 2024/10/25, 13:10
© Reuters.
FRAS
-
BOOH
-

LONDON - In the ongoing corporate tussle between boohoo Group plc (AIM: BOO) and Frasers Group (LON:FRAS) plc, boohoo has addressed the recent claims by Frasers regarding board representation and the CEO appointment process. The online fashion group has clarified its stance on the issues raised by Frasers in a letter dated October 24, 2024.

boohoo's board has stated that it has not delayed or dismissed Frasers' requests for board representation. The matter came to the forefront on October 18, 2024, when Frasers proposed Mike Ashley, a major shareholder in Frasers, for the role of Director and CEO of boohoo. This was a reversal from Frasers' previous position on October 9, 2024, when it had ruled out Ashley for the role and suggested a non-executive nominee.

The Board emphasized the need for careful consideration of Ashley's candidacy, given his significant stake in Frasers and the fact that Frasers owns a 23.6% stake in ASOS (LON:ASOS) plc, a direct competitor. boohoo has expressed its willingness to discuss board representation with Frasers but insists on appropriate governance measures to safeguard the interests of the company and all shareholders. Frasers has yet to provide the necessary assurances demanded by boohoo.

Regarding the CEO role, boohoo reaffirmed that John Lyttle remains the CEO while the Board oversees a thorough selection process for his successor, which began before the discussions with Frasers.

Additionally, boohoo has refuted Frasers' characterization of its debt refinancing as "inaccurate and unfair." The company defended the refinancing, stating it ensures future certainty and is backed by its consortium of high street banks. boohoo had previously invited Frasers to propose alternative refinancing strategies, but no proposals were made.

The company is set to publish its interim results in November and has advised shareholders to refrain from taking action based on Frasers' proposals. This statement is based on a press release issued by boohoo Group plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.