Frasers Group plc has failed in its attempt to have boohoo co-founder Mahmud Kamani removed as a director of the fast fashion giant.
A total of 37% of votes cast by boohoo Group plc shareholders were in favour of removing Kamani from the board, with 63% against the resolution brought by Frasers.
The turnout represented 80% of boohoo’s shareholder base. Frasers holds 27% of shares in boohoo Group plc.
“With the clear support of shareholders, the board calls on Frasers to end its attempts to destabilise and disrupt the group,” boohoo stated to the London Stock Exchange while revealing the results.
“These continued distractions are not in the best interests of creating value for all shareholders.”
Frasers, the parent company of Sports Direct led by Mike Ashley, made the play late last year. boohoo responded by forming an independent committee comprising all directors other than Kamani to consider its recommendation to shareholders in relation to how they should vote.
Earlier this month it published an open letter containing its findings: the committee recommended unanimously that shareholders vote against the removal of Kamani.
Frasers also made a failed attempt just before Christmas to install Ashley and restructuring expert Mike Lennon to the company’s board.
boohoo responded to those moves by appointing Dan Finley, former boss at Debenhams – a subsidiary of boohoo – as CEO, with Kamani moving from his executive chair position to vice-chair and non-executive director Tim Morris made chair. Previous CEO John Lyttle resigned in October after five years with the business.
It also offered Frasers a board seat – with the crucial caveat that it cannot be used for either Ashley or Lennon.
“I would like to thank our shareholders for their overwhelming support, which provides the board with a clear mandate to continue with the work of creating maximum value for all shareholders,” said Morris.
“Today’s outcome follows the rejection in December of the previous Frasers attempt to destabilise boohoo. On both occasions 99% of investors who are not connected to Frasers backed the board’s position.”
Finley added: “Once again, our shareholders have spoken. We want to put this disruption and distraction behind us. Our focus is on maximising value for all shareholders.”
The long-running feud between Ashley and Kamani has seen both Frasers and boohoo publish websites dedicated to slamming the other – boohoodeservesbetter and boohoo for all – as well as several hostile open letters.
Frasers has labelled Kamani “an egotistical founder who has an unhealthy grip on the board”.