Frasers Group has swiftly reacted to the news that Boohoo's executive chair Mahmud Kamani will transition to vice chair, asserting that this move is insufficient and he "must go".
In a statement released this morning, Boohoo's leading shareholder demanded a meeting to oust Kamani from the board, proposing Mike Ashley and Mike Lennon as replacements.
Concurrently, Boohoo disclosed that co-founder Mahmud Kamani was succeeded by non-executive director Tim Morris as chairman, effective immediately, with Kamani assuming the role of vice chair, as reported by .
However, Frasers maintains its stance, reiterating its earlier assertion: "[The board] is ultimately run by Mr Kamani, for the benefit of Mr Kamani," describing the board as "dysfunctional".
"His title might have changed but his grip on the company has not. Recent events, in particular the interim results, lack of transparency and further supply chain allegations, should leave shareholders in no doubt Mr. Kamani must go," commented a Frasers spokesperson following Boohoo's update.
Boohoo's recent half-year financial report showed a 15 per cent drop in revenue, a 10.5 per cent decrease in adjusted EBITDA, and a net debt surge exceeding £100m.
This incident marks the latest clash in an ongoing series of disputes between Frasers Group and Boohoo, with both parties levelling accusations of self-interest. The feud has been escalating for almost a month.
Frasers Group has accused the retailer of "long-term mismanagement" leading to significant "value destruction". It also criticised the retailer's £222 million refinancing plan, but rival Boohoo labelled Frasers' assessment as "inaccurate and unfair".
Founder Mike Ashley has insisted that he is the right person to maximise shareholder value as CEO. However, his ambitions were dented when Boohoo named Dan Finley for the top job just last month.
Boohoo said this morning: "Shareholders should ask themselves what Frasers' true intentions are, and why is it apparently seeking to disrupt the Business Review. Is it purely to maximise value, or is there an ulterior motive to acquire boohoo's assets for below market value? "
Investors will have their say on the potential board appointments of both Ashley and restructuring expert Mike Lennon in a vote scheduled for 20 December.
