Frasers demands that Boohoo chair Kamani is replaced by Mike Ashley

In a note to shareholders published this morning, Frasers have called another shareholder meeting in a bid to oust Boohoo executive chair Mahmud Kamani and replace him with Mike Ashley in order to protect shareholder value.

“Recent events, in particular the results, lack of transparency and further supply chain allegations, should leave shareholders in no doubt – Mr Kamani must go”, the note says, before declaring: “A simple choice: win with Mr Ashley or lose with Mr Kamani”.

Frasers’ letter goes on to accuse Kamani of “multi-year share price collapse and value destruction”, “abysmal trading performance”, ”dismal financial results”, “further supply chain allegations”, a “sustained track record of governance failures and a ‘back pocket’ board”, “related cronyism”, “ill-judged, value-destroying capital investment” and a “total disregard” for the shareholders. 

By contrast, the note says that Frasers and Ashley have returned over £800m to shareholders over the last five years. “We, the shareholders, have suffered for long enough. It is time for change.”

The letter goes on to criticise Boohoo and Kamani for everything from the “rushed” appointment of Dan Finley as group chief executive, the recent publishing of its “catastrophic” results and refinancing agreement, the “deeply troubling” new allegations around Boohoo’s supply chain and described Boohoo’s recent circular as a “litany of desperate and baseless claims”.

“Shareholders have lost money and there is justified disappointment with and distrust of the current leadership, in particular, Mr Kamani. With the appointment of Mr Ashley and Mr Lennon, Boohoo has the potential to become a valuable and profitable business,” the letter concludes. 

“Boohoo urgently needs a reset, and the upcoming Shareholder Meeting is your opportunity finally to unlock the Company’s incredible potential. Join us in helping Boohoo get back on track.”