Frasers call for suspension of Boohoo founder and investigation into loan claims

Frasers Group made the call in an open letter to Boohoo chair Tim Morris. It followed the publication by The Telegaph last week of allegations about loans which, according to Frasers, mean that “if proven, it appears that Mr Kamani may have breached his duties as a director of Boohoo and could also have committed various criminal offences”.

The latest row reignites a clash between the two companies and their leaders during which Frasers attempted to seize control of Boohoo, which has since rebranded as Debenhams.

Frasers’ lawyers White & Case wrote to Morris: “Given the seriousness of the matters which have now been published by The Telegraph in the article, Frasers requests urgent reassurance from you that you will arrange for these matters to be properly and independently investigated.

“This letter has been sent to you directly due to the seriousness of the issues raised with regards to the conduct of Mr Kamani. Frasers considers that it is extremely important you take immediate legal advice as to the most appropriate way to have these issues investigated to ensure that you deal with them in accordance with all applicable laws.

“Frasers also considers that it is your responsibility, as well as that of the entire board of directors of boohoo, to protect Boohoo and its shareholders from Mr Kamani and any of his associates who may be complicit in these matters.

“The article suggests that Mr Kamani has been involved in making loans to suppliers of boohoo (the “suppliers”) through other companies, including Pinstripe Clothing (now trading as Pinstripe Property), a private company co-owned by Mr Kamani.

“The article further suggests that 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 letter added: “Frasers also asks that Boohoo suspends immediately any roles or responsibility held by Mr Kamani and any of his associates involved in this matter, pending outcome of the independent investigation.”

Boohoo has not yet responded publicly to Frasers’ letter.