Frasers Demands Boohoo Honor Shareholder Approval for Asset Sales
- Frasers has called for Boohoo to openly confirm that it will seek shareholder approval before selling any assets.
- The demand follows Boohoo's appointment of Dan Finley as CEO, which Frasers criticized as rushed and disregarding shareholder input.
- Frasers believes any asset disposals could be executed from a position of weakness and that prior approval is crucial to protect shareholder interests.
Frasers has expressed concerns regarding Boohoo's management and decision-making processes, urging the fast fashion retailer to adhere to shareholder interests. The statement followed Boohoo's appointment of Dan Finley as CEO, which Frasers criticized for not involving its preferred candidate, Mike Ashley. Frasers claims that Boohoo's historical disregard for shareholder input is alarming, especially given its significant ownership stake of 27%. They insist that Boohoo must confirm in public that no assets will be sold without consulting shareholders, emphasizing the potential negative impact of selling assets amid current commercial challenges. The retailer's proposals include requiring independent confirmation of any asset sale to ensure fairness and that it serves the best interests of shareholders. Boohoo's response was to decline comment, which indicates an ongoing conflict between the two companies as challenges mount for Boohoo's leadership and future direction.