Mike Ashley and Boohoo prepare for festive showdown as struggling fast fashion company turns to investors for £39m

Boohoo faces a showdown with Mike Ashley days before Christmas, it was revealed last night.

Ashley, whose Frasers retail empire owns 27 per cent of the struggling fashion site, will look to install himself as chief executive at an emergency investor meeting on December 20.

Boohoo revealed details of the meeting after markets closed yesterday, with the unscheduled publication of its half-year results.

It also announced plans to raise up to £39.3m from shareholders.

Boohoo urged investors to reject Ashley’s demands, reiterating its claim that the tycoon is promoting “commercial self-interest” at the expense of his fellow investors.

He added: “The board has a credible plan to unlock and maximize value for the benefit of all shareholders.”

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.

Ashley’s persistent demand for a chance to reform Boohoo has even gone so far as to create a website: “Boohoo deserves better.”

Last night Boohoo said Ashley was “conflicted” as Frasers owns stakes in rival brands.

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

New chief executive Dan Finley said: “There have been challenges and we continue to operate in a volatile market.”

Shares were broadly flat at 30p.