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- Boohoo investors cast 63.2% of votes against Mahmud Kamani’s expulsion
- Frasers previously attempted to have Mike Ashley appointed to the Boohoo board
Frasers Group’s attempts to overhaul Boohoo’s leadership have failed again after shareholders decided to keep its co-founder on the board.
Boohoo investors on Tuesday cast 63.2 per cent of votes against a resolution calling for the removal of Mahmud Kamani as director of the online fashion retailer at a general meeting.
Proxy adviser Glass Lewis last week recommended shareholders oppose the motion brought by Frasers, saying Boohoo had “initiated significant action” to try to revive the business.
These include launching a business review, strengthening its balance sheet and selecting Debenhams boss Dan Finley as chief executive.
He said these changes “should allow the company to retain Mr. Kamani’s knowledge and institutional experience while empowering new leaders to undertake initiatives that will likely be necessary to improve the company’s performance.”
Today’s vote comes a month after Boohoo investors rejected proposals at another general meeting in Manchester to include Mike Ashley and turnaround specialist Mike Lennon on the board.
Not approved: Boohoo investors majority voted against a resolution calling for the removal of Mahmud Kamani (pictured) as director of the online fashion retailer
Tim Morris, chairman of Boohoo, said the vote “provides the board with a clear mandate to continue the work of creating maximum value for all shareholders”.
Frasers, which owns a 27 per cent stake in Boohoo, has publicly urged the group to appoint the two men since last October.
In an open letter published that month, he accused the company’s current bosses of “long-term mismanagement” as well as “large-scale value destruction.”
Over the past five years, Boohoo shares have plunged around 90 per cent amid a massive slowdown in online clothing sales, cost of living pressures and competition from Chinese rivals such as Shein and Temu.
In the six months to August, the company reported that its turnover fell 15 per cent to £619.8 million, while its adjusted pre-tax losses tripled to £27.4 million.
However, Boohoo objected to Ashley and Lennon’s respective appointments, citing “irreconcilable conflicts of interest”, such as Frasers’ 21.1 per cent stake in rival retailer ASOS.
He also accused the retail giant, whose brands range from Sports Direct to Flannels and Jack Wills, of focusing on its own “commercial interest” at the expense of other investors.
A week before the December 20 vote, the owner of PrettyLittleThing offered Frasers a seat on its board of directors, as long as the occupant was not Ashley or Lennon, but Frasers refused to budge.
Following the latest vote, Dan Finley said Boohoo wants to “put this disruption and distraction behind us”. Our goal is to maximize value for all shareholders.”
Boohoo Group Shares They rose 2.5 per cent to 30.4p on Tuesday afternoon.
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