Frasers Says Boohoo Executive Chairman ‘Must Go,’ Fashion Firm Appoints Tim Morris as Independent Chair

Frasers Group (LON: FRAS) issued an open letter to shareholders of Boohoo (LON: BOO) on Thursday, calling for the removal of Executive Chairman Mahmud Kamani.

The letter accuses Kamani of overseeing a period of “chaos” at Boohoo, including the CEO's resignation, poor financial performance, “terrible refinancing,” and ongoing supply chain allegations.

Frasers has requisitioned a shareholder meeting to vote on Kamani's removal and the appointment of Mike Ashley and Mr. Lennon as directors of Boohoo.

Frasers noted that “after much delay,” Boohoo has published the circular and notice of the shareholder meeting that Frasers Group requisitioned, with a meeting date set for Friday, 20 December 2024.

In the letter, Frasers paints a bleak picture of Boohoo's recent performance, highlighting the company's emergency fundraise, falling sales, and declining customer metrics.

They argue that Kamani's leadership has led to a “multi-year share price collapse and value destruction.”

Frasers believes that Ashley and Mr Lennon's experience and track record of turning around businesses can revitalise Boohoo. They pledge to bring “total transparency,” improve Boohoo's financial position, and address the ongoing supply chain issues.

They also want to review Boohoo's financing arrangements, bring Boohoo their retail and logistics expertise, lead the drive to return Boohoo to profitability and return the company to a winning mentality.

However, in a further development on Thursday, Boohoo announced the appointment of Tim Morris as its independent Chair.

The move comes as part of a series of changes aimed at improving the company's governance and addressing its recent challenges. Mahmud Kamani will transition to the role of Executive Vice Chair, focusing on the company's young fashion businesses.

“In connection with Tim's appointment as Chair, Mahmud Kamani has also reconfirmed his agreement to provide assurances around his relationship with the Company as a major shareholder, for the benefit of all shareholders,” said Boohoo.