Who but them! Boohoo offers a board seat for Frasers – except for Mike Ashley

Boohoo is willing to give Frasers Group a seat on its board after owner Sports Direct decided on a number of management issues.

However, the Manchester retailer said the ‘relevant candidate’ was not Mike Ashley or his partner, Mike Lennon, whose Frasers had urged shareholders to hold an upcoming meeting. now.

Boohoo said the two men have conflicting interests, and that the board seat should be filled by someone who can fulfill the management obligations it has applied for.

In a letter published on Thursday, Frasers said Ashley and Lennon were willing to adhere to ‘all market and generally accepted’ operating procedures.

But the firm objected to the ‘minimum restrictions’ Boohoo had asked for, saying they were unconstitutional and unconstitutional.

Frasers also claimed that Boohoo had ‘exaggerated problems and management issues’.

Karen Millen’s chairman, Mahmud Kamani, was also accused of opposing the appointment of Ashley and Lennon to the board because of ‘fear of losing his power’.

The letter arrived the same day as a second diplomatic adviser, Glass LewisBoohoo shareholders urged to elect Ashley and Lennon as board members at the general meeting scheduled for 20 December.

Frasers believes the pair will provide the leadership needed to revive Boohoo, whose shares have fallen by around 90 per cent in the past five years.

However, Tim Morris, chairman of Boohoo, said ‘nobody should join the board under any circumstances, no matter what restrictions are imposed’.

He added: ‘Despite that, Frasers still refuses to accept many of the key safeguards the board would need if a suitable representative were to be appointed.

‘These are key issues that need to be addressed for the protection of all shareholders and it is not up to Frasers to choose which bonds to issue.’

Boohoo enjoyed growth during the early stages of the Covid-19 pandemic due to the strong ban on brick-and-mortar stores that encouraged Britons to buy clothes online.

Sales will slow after restrictions are eased, and consumers will start buying clothes in stores again.

Its sales began to decline amid cost-of-living pressures and increased competition from Chinese retailers Shein and Temu.

In the last financial year, Boohoo’s turnover fell by more than £300million to £1.5billion, while its pre-tax losses rose in the third quarter to £159.9million. .

Distributed by the Boohoo team it was 1 percent higher than Friday morning’s 35.1pi, though Frasers Group shares it’s 0.6 percent less than 620p.