Frasers describes disputes with Boohoo as “grossly exaggerated”

The exchange of blows between Frasers Group and Boohoo continues. The two companies are locked in a public battle over board control as Boohoo struggles with declining sales. Just hours after Boohoo announced that a proxy advisor had recommended that shareholders vote against Frasers’ proposals at its upcoming AGM, Frasers published a letter to Boohoo shareholders expressing its criticism the fast fashion giant’s business processes and leadership.

In the letter, Frasers responded to Boohoo’s repeated allegations that the group was unwilling to make governance commitments if Mike Ashley and Mike Lennon – Frasers Group’s two proposed representatives – were elected to the board. Frasers stepped up its criticism of Boohoo’s leadership, saying the Debenhams owner had “grossly exaggerated any perceived conflict and governance concerns”. These claims are merely a “thinly veiled pretext to prevent the appointment of Ashley and Lennon as directors”.

Frasers stressed that Ashley and Lennon were prepared to comply with “all standard and generally accepted governance protocols”. At the same time, however, the group noted that there were a “small number” of claims from Boohoo that “had no legal basis and could not be considered acceptable corporate practice.” Frasers added that it believed this pushback was because Boohoo founder Mahmud Kamani feared such appointments could “dilute his influence on the board”. This comes despite alleged private admissions that Ashley would bring “unrivaled retail expertise” to Boohoo if appointed.

The letter was published shortly after it was revealed that Boohoo had begun a redundancy program at its headquarters in Manchester. This move is part of comprehensive cost reduction strategies led by new CEO Dan Finley. According to trade publication Drapers, the scheme will affect around 200 employees, spread across various brands in the group’s portfolio, including Boohoo and PrettyLittleThing. Boohoo declined to comment on the job cuts.