Boohoo Group has appointed Tim Morris as its new independent chair, following a series of developments in the ongoing conflict with major shareholder Frasers Group. The move comes after Boohoo’s recent leadership changes and refinancing efforts.
On Thursday, Boohoo’s board announced that it had “unanimously agreed” to appoint Morris as chair, effective immediately. This follows the earlier appointment of Dan Finley as the new CEO. Boohoo stated that this decision underscores its commitment to upholding strong corporate governance.
Morris, who has served as a non-executive director at Boohoo since 2021, brings extensive experience from roles at TalkTalk Telecom Group and as a founding partner at Freston Ventures Investments. He will oversee a company-wide business review, led by Finley, and ensure that high standards of governance are maintained.
As part of the leadership changes, Boohoo co-founder Mahmud Kamani will step down from his role as executive chair and become executive vice-chair. The decision to divide Kamani’s duties between his executive and chair roles allows the company to maintain an independent chair while Kamani continues his focus on Boohoo’s young fashion businesses.
Alistair McGeorge will remain as senior independent director, adding further independence to the board.
Boohoo also confirmed that Kamani, as a major shareholder, has agreed to provide reassurances about his relationship with the company. These include pledges not to share sensitive information with competitors, not to acquire additional shares or seek to merge Boohoo with a competitor without board approval, and to refrain from making an offer for the company or its assets.
Meanwhile, Frasers Group, which holds nearly 30% of Boohoo’s shares, has called for Kamani’s removal. In an open letter on Thursday, Frasers demanded that shareholders vote to oust Kamani as a director. The letter criticized Boohoo’s recent financial struggles, including a significant drop in share price and supply chain issues.
Frasers has requisitioned a shareholder meeting, scheduled for just before Christmas, to vote on removing Kamani and appointing two new directors: Mike Ashley, Frasers’ founder, and Mike Lennon, a Frasers nominee.
Frasers also expressed concerns over Boohoo’s management, questioning the appointment of Finley, who they noted has no prior experience leading a public company. They outlined a vision for Boohoo that includes greater transparency, a review of its financing, and bringing in expertise from Frasers’ long-standing experience in retail and logistics.
This ongoing dispute highlights the tensions between Boohoo’s leadership and its largest shareholder as both parties work to shape the company’s future.
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