Boohoo has again called on its shareholders to vote against a proposal to be tabled at the upcoming general meeting convened by Frasers Group. The meeting, which will take place on January 21, 2025, is expected to decide on the removal of Boohoo founder Mahmud Kamani as managing director.
In a new letter to shareholders, Boohoo recommends rejecting Frasers’ demand for Kamani’s removal. In the release, the group said the demand was “part of an ongoing campaign by Frasers that appears to be aimed at destabilizing Boohoo and disrupting the board’s plans to unlock and maximize shareholder value.” Boohoo added that Frasers was acting “solely in its own commercial interests”.
Boohoo’s independent committee was “unanimous” in its view that Kamani should remain chief executive. The executive was described by Boohoo as an “integral part of the leadership team” whose advice and guidance continued to be “invaluable” to the company.
Kamani’s removal was one of the motions tabled by Frasers back in November 2024, after the group called for a shake-up of the fast fashion giant’s senior management amid a string of weak financial results. In mid-December, Boohoo shareholders voted against Frasers’ other proposals – including the appointment of Frasers founder Mike Ashley and Mike Lennon to the Boohoo board – but the group continued to emphasize its low confidence in Kamani as chief executive.
Boohoo and Frasers have been at loggerheads since Boohoo announced a corporate review in October, following the departure of former CEO John Lyttle. After shareholders rejected the appointment of Ashley and Lennon, Frasers reiterated its continued commitment to achieving representation on the Boohoo board.
This article previously appeared on Fashionunited.uk and was created using digital tools translated.
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