Frasers to name new pick for Boohoo board after Mike Ashley snubbed

Frasers will propose a new candidate to join Boohoo’s board, after the retailer’s shareholders rejected the appointment of founder Mike Ashely last week.

Boohoo shareholders on Friday rejected two resolutions at a general meeting in Manchester that would have appointed Ashley and his partner, insolvency expert Mike Lennon, to positions on the board.

Ashley’s firm, which has been pushing for an urgent leadership change at Boohoo, said on Monday it “respects the views of independent shareholders” and would accept Frasers’ offer to propose an alternative candidate.

He added: “We will put forward a highly qualified candidate in due course and we hope that the Boohoo board maintains its commitment without hesitation or delay.”

boohoo shares They are down about 20 percent over the past year and almost 90 percent over the past five years, as the fast-fashion retailer has suffered declining sales, rising losses and an uncertain balance sheet.

The group recently appointed Debenhams boss Dan Finely as chief executive of Boohoo in an effort to get it back on track.

But Frasers has accused Boohoo bosses of overseeing “large-scale value destruction and ongoing, long-term incompetence” as well as failing to “meaningfully engage” with shareholders.

For its part, Boohoo accuses Frasers of pursuing its own interests at the expense of other shareholders.

In a separate statement, Boohoo also announced on Monday the sale of its London office, the proceeds of which will be used to pay off a loan due to be repaid in August next year.

The group has agreed the £49.5m cash sale of the Great Pulteney Street, Soho, office to property fund Global Holdings UK.

Boohoo said: ‘The move taken to dispose of this non-strategic and non-core asset will further strengthen the company’s balance sheet.

“This will leave the company with a £125m revolving credit facility which is sufficient for its future needs.”