Boohoo shareholders shun Frasers and vote to keep co-founder Kamani on board
Boohoo shareholders have voted two to one against a resolution proposed by Mike Ashley’s Frasers Group to remove co-founder and vice chair Mahmud Kamani as a director of the fast-fashion giant.
Four fifths of shareholders took part, and two thirds of participating shareholders voted to retain Kamani on the board of the Manchester-headquartered company.
In a statement, Boohoo said it had the “clear support of shareholders” and called on Frasers to “end its attempts to destabilise and disrupt the group”.
“These continued distractions are not in the best interests of creating value for all shareholders,” Boohoo added.
The two companies have been locked in a bitter public dispute since Boohoo’s chief executive, John Lyttle, stepped down in October.
Frasers, which owns around 27 per cent of the company, made a play to install Ashley as Lyttle’s successor but was soundly rejected.
Former Debenhams chief Dan Finley was then appointed to the role.
In December, Ashley – along with restructuring specialist Mike Lennon – made another attempt to join the board, but the resolution was rejected by shareholders.
Ashley said he planned to help the company return to profit after a destabilising period in which cheaper competitors Shein and Temu have made inroads in Boohoo’s market share.
In its latest half-year results, Boohoo announced that revenue had fallen 15 per cent, while adjusted operating profit fell 10.5 per cent and net debt increased by over £100m.
Tim Morris, non-executive chair of Boohoo, said: “I would like to thank our shareholders for their overwhelming support, which provides the board with a clear mandate to continue with the work of creating maximum value for all shareholders.
“Today’s outcome follows the rejection in December of the previous Frasers attempt to destabilise boohoo.
“On both occasions 99 per cent of investors who are not connected to Frasers backed the board’s position.”
Boohoo’s share price has fallen by more than nine per cent in the last month and more than 90 per cent in the last five years.