Frasers Group seeks shareholder approval for sale of Boohoo assets

Frasers Group has sent another open letter to Boohoo Group Plc, this time demanding shareholder approval before the company sells assets. The company, led by Mike Ashley, accuses Boohoo of ignoring the interests of shareholders.

In the letter, Frasers continued: "The board pushed Boohoo into an unfavourable refinancing and refused to engage with us. Now they have hastily appointed a new CEO to reduce shareholder influence. This has to stop. What's next? Desperate people are making desperate decisions."

In addition, Frasers has launched an exclusive website, www.boohoodeservesbetter.com, where shareholders can find information on “Frasers’ proposal to resolve Boohoo’s leadership crisis.”

Frasers expressed her "grave concerns" in a letter to Boohoo's board last week about the potential asset sale, after the fashion company announced last month that it was launching a strategic review to "enhance shareholder value". The review is expected to result in a break-up of Boohoo, which owns brands including Debenhams, Karen Millen, Boohoo, BoohooMan and PrettyLittleThing.

Frasers urges Boohoo to explore other options before selling anything, to ensure that "all opportunities to secure the best value for shareholders are considered fairly and thoroughly." Frasers adds: "Given the current market conditions and Boohoo's commercial challenges, the sale of assets, including key brands or the Soho office, would be undertaken from a position of weakness. This would likely be done at a discounted value and is unacceptable without shareholder approval first."

Last week, Boohoo rejected Ashley's demand to become the new CEO and appointed Debenhams boss Dan Finley to the role, a move Frasers described as "desperate". Frasers said Boohoo's board was unwilling to work together in a constructive way, prompting them to now make their demands public.

This article originally appeared on FashionUnited.NL. It was translated to English using an AI tool called Genesis and edited by Rachel Douglass..

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