Boohoo snubs Mike Ashley in shocking board decision
- Boohoo has offered a board seat to Frasers Group if a suitable candidate is proposed.
- The company refused the appointment of Mike Ashley and Mike Lennon due to conflicts of interest.
- Boohoo's decision reflects unresolved governance issues and shareholder tensions ahead of its general meeting.
In the UK, Boohoo has been engaged in discussions concerning a board seat for Frasers Group, contingent on suitable candidates being proposed. However, the online retailer has firmly rejected calls for the appointment of Mike Ashley, founder of Frasers Group, and restructuring expert Mike Lennon. Boohoo indicated that the conflicts of interest that arise from Ashley's and Lennon's ties with Frasers make their proposed appointments unacceptable. While Boohoo expressed a willingness to engage in 'constructive' talks about its largest shareholder potentially joining the board, it highlights the necessity of ensuring that key protections are adhered to. This situation has created tension as Ashley has actively prompted shareholders to support his candidacy and that of Lennon at Boohoo's upcoming general meeting scheduled for December 20. The chairman of Boohoo Group, Tim Morris, has emphasized that Frasers continues to resist agreeing on essential protections that Boohoo deems necessary in their governance. Overall, this unfolding situation reflects larger themes of corporate governance and the complexities of shareholder involvement in the board's decisions.