8th Nov 2024 10:06
(Alliance News) - Manchester-based online fashion retailer boohoo Group PLC on Friday responded to an open letter from Sports Direct owner Frasers Group PLC.
boohoo said it remained committed to open and transparent engagement with all of its shareholders, including Frasers, as it is committed to ensuring it takes the right steps to drive boohoo in the interest of all shareholders "and not just Frasers' self-interest."
boohoo reiterated an announcement from October 24, stating "it 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."
Further, boohoo highlighted that Frasers is a large shareholder of clothing retailer Asos PLC, 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," it added. Frasers has a 23.63% voting rights stake in Asos, as at October 22.
boohoo added that Frasers had agreed to a meeting with boohoo to discuss Frasers' concerns regarding any potential disposals. "This meeting was suggested by boohoo to Frasers last week and the board is therefore disappointed that Frasers omitted to mention this meeting in their open letter, which was therefore inaccurate and misleading," boohoo said.
Last week Friday, boohoo said it promoted the CEO of Debenhams, Dan Finley, to the role of its own CEO with immediate effect. boohoo had acquired the online operations of Debenhams out of administration back in 2021.
Frasers, which holds a stake of around 27% in boohoo, had wanted to install its own founder Mike Ashley as boohoo CEO, however.
Following the snub, Frasers had asked boohoo to confirm that it will not make any disposals of its assets without prior shareholder approval.
boohoo shares rose 1.9% to 30.76 pence each on Friday morning in London, while Frasers shares were 1.7% lower at 752.50p each.
By Tom Budszus, Alliance News slot editor
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