Mike Ashley has failed in his bid to be elected to the board of boohoo Group plc.
Shareholders voted against the election of the Frasers Group plc owner in the company’s annual general meeting this morning.
A separate attempt by shareholder Frasers to install restructuring expert Mike Lennon also failed.
A long-running feud between Ashley and boohoo co-founder Mahmud Kamani came to a head today, with both Frasers and boohoo having published websites dedicated to slamming the other – boohoodeservesbetter and boohoo for all – as well as several hostile open letters as they sought to influence shareholders in the vote.
The corporate website of boohoo has also carried this message on its homepage for the past few weeks: “The board recommends that shareholders vote against all resolutions at the general meeting on 20th December 2024.”
Journalists were banned from the AGM, with only shareholders allowed to attend.
In a notice to the London Stock Exchange, boohoo said 36.23% of votes cast voted in favour of Ashley’s appointment, with 63.77% against.
It said 36.24% of votes cast on Lennon were in favour of his appointment, with 63.76% against.
Turnout was around 81.1% for both.
Frasers – parent company of Sports Direct, where Ashley is CEO – holds 27% of shares in boohoo Group plc and has tried to get Ashley installed as CEO in recent months.
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.
“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,” said non-exec chair Morris.
Finley 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.”
Frasers also attempted to get Lennon appointed to the board today alongside Ashley, labelling Kamani “an egotistical founder who has an unhealthy grip on the board”.
Advisory firm Institutional Shareholder Services (ISS) and independent proxy adviser Glass Lewis came out in support of boohoo, questioning Frasers’ motives for appointing Lennon, a restructuring expert.
boohoo recently offered Frasers a board seat – with the crucial caveat that it cannot be used for either Ashley or Lennon.