Frasers calls for Boohoo co-founder Mahmud Kamani to be sacked

Frasers has called for a vote to sack Boohoo co-founder Mahmud Kamani as row over the future of the troubled fast fashion brand continues to escalate.

Frasers and Boohoo are already set for a shareholder showdown on December 20, in which Frasers hopes investors will approve the appointment of Mike Ashley as Boohoo’s chief executive and the overhaul of the company’s leadership.

Frasers, which owns 27 percent of Boohoo shares, said on Thursday that investors should also be allowed to vote on the removal of chief executive Kamani and prevent the board from reappointing him – or any other director. – before its next annual general meeting.

Ashley’s retail empire has been calling for a change of direction at Boohoo amid poor financial results and dismal share price performance, which it now says are “synonymous” with Kamani’s leadership.

It came as Boohoo moved to reassure shareholders with the appointment of TalkTalk group general counsel and company secretary Tim Morris as independent chairman.

Boohoo’s losses rose to £147m in the six months to the end of August, while sales fell 15 per cent to £620m.

In early November, the group rejected calls for Ashley’s appointment as chief executive by naming Dan Finley as its new boss.

Boohoo accuses Frasers of “self-interest” at the expense of other shareholders and maintains it is on the road to recovery.

Kamani, who co-founded Boohoo with Carol Kane in 2006, will now become executive vice-president “to allow the company to have an independent chairman and to allow Mahmud to continue in his day-to-day executive role”.

Boohoo said: “Tim’s appointment and his experience in legal, governance, business and board advice will ensure that high standards of corporate governance continue to be maintained, including in relation to business review.”

“Mahmud is an integral part of the management team and is currently focused on the group’s young fashion businesses.”

Kamani has also recommitted to providing assurances related to its position as a major shareholder, such as refraining from involvement in the business decision-making of any competitor.

boohoo shares They rose 1 percent to 29.9 pence in early trading, having lost 20 percent of their value since the beginning of 2024 and more than 90 percent since their June 2020 peak.

In recent years, Boohoo has bought brands including Dorothy Perkins, Wallis and Burton from Sir Philip Green’s collapsed empire. It also acquired Karen Millen for £18.2m in 2019 and department store chain Debenhams for £55m in 2021.

Boohoo has already paved the way for a possible spin-off of its business, casting doubt on the future of some of its brands, such as Oasis and Coast, which could be spun off or sold to boost Boohoo’s sagging share price.

Frasers, which is also calling for the appointment of Mike Lennon as a director, wrote in an open letter to investors on Thursday: “Shareholders have lost money and there is justified disappointment and distrust in the current leadership, particularly Mr Kamani.

‘With the appointment of Ashley and Lennon, Boohoo has the potential to become a valuable and profitable business.

‘Boohoo needs an urgent reboot and the upcoming shareholder meeting is its chance to finally unlock the company’s incredible potential. Please join us in helping boohoo get back on track.”