Frasers ​insists on shareholder approval before any Boohoo asset disposals in new letter

The letter asked the board to stop its “utter disregard” for shareholders’ views, adding that Frasers still believes in the potential of the Boohoo business.

It continued to say: “The directors have pushed boohoo into a terrible refinancing while refusing to engage properly with Frasers on it. They have then rushed out a chief executive officer appointment to try and block the say of shareholders.

“This has to stop. What will they try next? Desperate people do desperate things.”

Frasers has asked the board to confirm in writing that it won’t start any process or enter any agreements for a disposal of Boohoo’s assets without “first engaging with Frasers on alternative options”.

It added that any disposals would come from a “position of weakness” and potentially at a discounted valuation.

Prior to any disposals, Frasers has also asked the board to publish confirmation of an independent global adviser or investment bank ensuring the terms are “fair and reasonable” and in the “best interests” of shareholders.

“We remind each member of the board to carefully consider their legal and regulatory duties, in particular their duty to act honestly and in good faith in the way most likely to promote the success of the company for the benefit of its members as a whole,” the letter said.

“Any disposal of Boohoo’s assets in breach of these duties, including any disposal that may occur at an undervalue and/or potentially to related parties of Mr. Kamani, could expose the directors to personal liability to Boohoo, and Frasers and other shareholders would be forced to consider our legal rights of redress.”

It concluded by asking each non-executive director to consider their “personal duties” and will push for legal action if they have breached this.

The new letter arrives after Frasers owner Mike Ashley called Boohoo “desperate” for choosing Debenhams boss Dan Finley as its new chief executive instead of Ashley himself.