Frasers focused on its own ‘self-interest’, says Boohoo Group

The ongoing discontent between Boohoo Group and Mike Ashley’s Frasers Group has escalated further today.

Earlier in the week, Mike Ashley's Frasers Group published another open letter to Boohoo Group, blasting the company for its "desperate" moves and making demands to not sell any of its assets without shareholder approval.

Frasers is Boohoo’s biggest shareholder with a 27% stake. However, on Thursday (7 November), Boohoo’s board issued a statement that said: “Frasers is not an independent shareholder in the Group, focused solely on the value of its investment. It is a trade competitor that is seemingly focused on its own commercial self-interest.”

“[Boohoo owned] Debenhams is also a leading competitor of House of Fraser, and Frasers was the largest shareholder in Debenhams prior to it being acquired, as well as being a competing bidder when Boohoo acquired Debenhams in 2021.”

The Boohoo board statement also said “Frasers is also a large shareholder in ASOS”, which “competes with Boohoo's brands”.

“Frasers also has a well-publicised history of making significant investments in other UK retailers which also compete with Boohoo.”

The board also said it was “wholly inappropriate for Frasers to seek to leverage its significant shareholding in Boohoo and other UK retailers to promote its own commercial self-interest.”

The statement concluded: “While [the board] remains willing to discuss board representation with Frasers in a constructive manner, it has been clear with Frasers that it will only offer a seat for an appropriate non-executive director and that before any appointment can be made, appropriate governance controls will be required to protect the company's commercial position and the interests of all other shareholders.”