14th Aug 2025 13:54
(Alliance News) - Frasers Group PLC on Thursday issued an open letter requesting that the chair of online fast fashion seller boohoo Group PLC be suspended and investigated for alleged misconduct.
Mahmud Kamani is the founder of Manchester, England-based boohoo. The company owns PrettyLittleThing, founded by Kamani's son, and legacy department store Debenhams, which transitioned to e-commerce only back in 2021.
Shirebrook, England-based Frasers owns heritage retailer House of Frasers, which has also converted to an online-only outfit. The Sports Direct and Flannels owner has a 29.5% stake in boohoo.
Frasers flagged a report by The Telegraph last Friday, which suggested Kamani was collecting debt from boohoo manufacturers by cutting supply payments.
WhatsApp messages from Kamani instructed a middleman to cut 20 pence per garment from payments owed to PDQ Textiles, which supplies boohoo from its factories in Pakistan. Kamani said he was owed GBP100,000 by Anjum Majid, the father of PDQ's owner, and that there would be "trouble" if PDQ tried to increase its prices.
Loans were made out to PDQ via Kamani's private company Pinstripe Clothing, which has since been renamed Pinstripe Property.
Frasers said: "These loans appear to be repaid by the suppliers to Mr Kamani through a scheme whereby funds are taken from boohoo and instead deposited into to Mr Kamani’s personal accounts or the accounts of other companies he owns."
The Sports Direct and Flannels owner told boohoo Independent Chair Tim Morris that he had a duty "to protect boohoo and its shareholders from Mr Kamani and any of his associates who may be complicit in these matters."
As a result, Frasers is demanding a "forensic" investigation into Kamani's conduct and his suspension from the board, pending the outcome.
This follows a failed attempt by Frasers founder Mike Ashley to become a director of boohoo, back in December. boohoo cited "irreconcilable conflicts of interest" for voting against Ashley's appointment.
In March, boohoo shareholders rejected a proposal to rebrand as Debenhams Group. boohoo said that "major competitor" Frasers voted against the name change "in its own self-interest". Though the holding company is still called boohoo, the firm insisted it will "continue forward as Debenhams Group".
Frasers shares were up 0.7% at 689.50 pence on Thursday afternoon in London, while boohoo traded down 0.7% at 15.10p.
By Holly Munks, Alliance News reporter
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