22nd Jan 2025 21:29
(Alliance News) - Frasers Group PLC on Wednesday called on boohoo Group PLC to disclose the pay and contract details of Umar Kamani.
In a letter to boohoo shareholders, Frasers, which owns Sports Direct, said it is aware of "certain troubling matters" in relation to the remuneration that it understands Umar Kamani, the son of boohoo’s founder and Executive Vice Chair, Mahmud Kamani, is receiving for providing "consultancy services" to a subsidiary of boohoo.
Frasers said it has recently been made aware of reports alleging that Umar Kamani is receiving payments exceeding GBP2 million annually from PrettyLittleThing to a bank account in Dubai. PLT was set up by Umar Kamani and was acquired by boohoo in 2020.
Frasers said it is "surprising" that no details of Umar Kamani’s remuneration at PLT have been provided to boohoo shareholders.
Frasers said no details have been disclosed despite repeated requests, adding it is aware that other shareholders of boohoo have previously asked questions relating to Umar Kamani’s position at PLT and no responses have been forthcoming.
Frasers called on boohoo again to "urgently provide" full details of Umar Kamani's consultancy arrangement, including pay details, "for the benefit of all boohoo shareholders".
The owner of Sports Direct and House of Fraser said it remains "deeply troubled" by boohoo's governance practices and lack of transparency.
On Tuesday, boohoo shareholders rejected a proposal by Frasers to remove founder and Vice Chair Mahmud Kamani from the board.
According to the Manchester, England-based online fast fashion retailer, 63% of shareholders voted against Kamani's removal, which was suggested by 27% stakeholder Frasers.
Frasers in December tried to appoint its founder and former Chief Executive Mike Ashley to boohoo's board, alongside insolvency consultant Mike Lennon. boohoo rejected both candidates in a roughly two-to-one vote.
Frasers closed 1.2% lower at 595.50 pence each in London on Wednesday, while boohoo closed down 2.3% at 29.78p.
By Jeremy Cutler, Alliance News reporter
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