Online retailer boohoo has appointed Debenhams boss Dan Finley in what is an apparent snub to retail tycoon Mike Ashley.
Announcement of Mr Finley's appointment, which takes place with immediate effect, was made to investors on the London Stock Exchange and follows Mr Ashley's Frasers Group pushing for boohoo to install its founder after John Lyttle announced he was stepping down in October.
Boohoo said Mr Finley's appointment - the result of a unanimous board decision - recognised the turnaround success he had led at Debenhams, which was acquired out of administration by boohoo in 2021, in a £55m deal. Prior to that, Mr Finley spent a decade as group multi channel director at JD Sports where he is said to have delivered "unprecedented digital growth".
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In recent weeks Frasers, which is boohoo's largest shareholder with a 27% stake, called for a meeting of investors to back its plans to appoint Mr Ashley. Frasers said such a move was "in the best interests of boohoo, its shareholders and its stakeholders" and said boohoo had been the victim of "long-term mismanagement" and "value destruction".
Alistair McGeorge, boohoo group deputy chairman, said: "The board of boohoo was unanimous in its decision to appoint Dan Finley as CEO. Dan is one of the outstanding leaders in a new generation of digital retailers. Dan and his team have successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth marketplace.
"Before Debenhams, Dan had a track record of phenomenal success in online retail during his 10 years at JD Sports. The board looks forward to working with him, as we continue the review of options to unlock and maximise shareholder value."
Dan Finley, boohoo Group CEO, said: "I am excited at the opportunities I see ahead as I become CEO of boohoo Group. We have brilliant brands and people, underpinned by best-in-class infrastructure. Under my leadership we have had great success with Debenhams and I look forward to exploring opportunities to extend this business model across the Group. I will dedicate myself totally to working with my colleagues to unlock significant value for all shareholders."
Boohoo said John Lyttle will remain available to Mr Finley and the group to ensure a smooth change of leadership.