Boohoo appoints Debenhams boss as chief executive in Mike Ashley snub

Boohoo has appointed Debenhams boss Dan Finley as its new chief executive, rejecting calls from major shareholder Frasers for the group to appoint retail tycoon Mike Ashley.

Finley is an expert, as Boohoo acquired the name and website operations from Debenhams when the group went into administration in 2021.

Boohoo said Finley’s selection was unanimously supported by the board and recognized the “phenomenal success Debenhams has enjoyed” under his leadership.

Frasers Group last week asked Boohoo investors to be given a vote for Ashley to replace John Lyttle as chief executive, calling it the “best solution” to the company’s “leadership crisis”.

In an open letter, Sports Direct’s owner accused Boohoo’s board of “obstructing” and failing to “meaningfully engage” with his ideas for management representation.

Frasers said management had presided over “large-scale value destruction” and had lost the ability to successfully manage the business and its investments.

Boohoo denied ignoring and delaying its response to the proposals and said Frasers “formally ruled out” Ashley for the chief executive role on October 9.

Frasers declined to comment on Finley’s appointment.

Alistair McGeorge, vice-chairman of Boohoo Group, said Finley had “successfully transformed Debenhams from a failing department store, creating a new business model that is a capital-light, equity-light, high-growth market”.

PrettyLittleThing boss Umar Kamani, who had also been tipped as a potential candidate for the Boohoo job, said in a statement on Instagram: “It’s a great appointment and we will definitely implement many positive changes for the benefit of all shareholders.” The beginning of an exciting new era for the Boohoo group.’

Lyttle announced a fortnight ago that he was stepping down after five tumultuous years at the fashion brand, whose share price has plunged more than 90 per cent since peaking at more than 400p in 2020.

Boohoo, owner of Karen Millen and PrettyLittleThing, enjoyed breakneck growth during the early days of the Covid-19 pandemic as tough lockdown restrictions on brick-and-mortar stores led Britons to buy their clothes online.

Its sales subsequently slowed and declined as those restrictions eased, cost-of-living pressures emerged and competition from rivals such as Shein abounded.

For the six months to the end of August, the company’s turnover fell 15 per cent year-on-year to £620m.

Finley told investors: ‘I am excited about the opportunities I see ahead as I become CEO of Boohoo Group. “We have brilliant brands and people, backed by best-in-class infrastructure.”

boohoo shares They rose 0.95 per cent to 29.9 pence on Friday morning, taking their losses since the start of the year to around 19 per cent.