Mike Ashley’s bid to join Boohoo’s board rejected

In a general meeting held at 10am today (20 December) in Manchester, shareholders rejected Ashley's and Lennon's appointments, with 63.8% voting against the resolutions.

Tim Morris, independent non-executive chair of Boohoo Group, said: "I would like to thank our shareholders for their support of the board. We remain focused on delivery of our business review with the objection of unlocking and maximising value for all shareholders."

Dan Finley, chief executive of Boohoo Group, added: "Our group is a dynamic business, with great brands and extremely talented people, underpinned by best-in-class infrastructure. Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders.

“I am super energised to realise the significant opportunities I see for this business. I continue to believe this group is materially undervalued. Our most important work is ahead of us, and we will drive value for all shareholders.”

The ongoing dispute between Frasers Group and Boohoo Group kicked off in October following the resignation of Boohoo CEO John Lyttle.

Frasers published an open letter to Boohoo's board the following week proposing that Mike Ashley be appointed as director and CEO. Ashley is the majority shareholder of Frasers with a 73% stake, which in turn owns 28% of Boohoo.

The letter published on 24 October said "the board has lost its ability to manage Boohoo’s business and investments" and there has been "a complete failure to meaningfully engage" with Frasers.

The next day Boohoo hit back at Ashley's demands saying "appropriate governance will be required to protect the company's commercial position and the interests of other shareholders".

Both parties have since published a series of letters which have been highly critical of the other. Boohoo has stated that it would be willing to offer Frasers a non-executive role "who can act without any conflict of interest".

Meanwhile, the sale process of Boohoo Group's London office had suffered a setback after a prospective buyer reportedly abandoned negotiations to acquire the site.

Drapers also revealed that Boohoo has launched a redundancy programme at its Manchester head office as part of a cost-saving plan led by Finley.

Separately, on 5 December, Frasers Group lowered its annual profit guidance following a drop in revenue and operating profit in its half-year results.