Boohoo shareholders have voted against resolutions put forward by Frasers Group at today’s general meeting (20 December), putting an end to the lengthy boardroom battle.
Frasers, which holds a 27% stake in Boohoo, had sought to appoint Mike Ashley as CEO and Mike Lennon as a director. The proposals also called for the removal of Boohoo’s executive chairman, Mahmud Kamani, as part of a broader plan to restructure the struggling fashion retailer.
Some 63.77% of shareholders voted against the appointment of Mike Ashley as a director, while 36.23% supported the proposal. Similarly, 63.76% rejected Mike Lennon’s appointment, while 36.24% voted in favour.
The total number of shares voted represented 81.10% of Boohoo’s issued share capital, with a small percentage withheld.
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Boohoo Group chair Tim Morris said: “I would like to thank our shareholders for their support of the Board. We remain focused on delivery of our Business Review with the objection of unlocking and maximising value for all shareholders.
CEO Dan Finley added: “Our Group is a dynamic business, with great brands and extremely talented people, underpinned by best-in-class infrastructure. Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders.
“I am super energised to realise the significant opportunities I see for this business. I continue to believe this group is materially undervalued. Our most important work is ahead of us, and we will drive value for all shareholders.”
The vote comes after weeks of back and forth between the two retail heavyweights.
Frasers publicly criticised Boohoo’s management and called for a leadership overhaul in response to the company’s deepening financial woes.
The Debenham’s owner’s board had raised concerns over governance and potential conflicts of interest, particularly in light of Frasers’ significant stake in Boohoo and its ownership of rival retailer Asos. Independent proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis also recommended voting against the proposals, adding weight to Boohoo’s position.
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