Mike Ashley and Boohoo set for a festive showdown as struggling fast fashion firm taps investors for £39m
Boohoo is facing a showdown with Mike Ashley days before Christmas, it was disclosed last night.
Ashley, whose Frasers retail empire owns 27 per cent of the struggling fashion site, will seek to install himself as chief executive at an emergency meeting of investors on December 20.
Boohoo disclosed details of the meeting after markets closed yesterday, with the unscheduled publication of half-year results.
Power struggle: Mike Ashley (pictured), whose Frasers Group empire owns 27% of Boohoo, will formally seek to install himself as chief exec at a meeting in December
It also announced plans to raise up to £39.3million from shareholders.
Boohoo urged investors to reject Ashley’s demands, reiterating its claim that the tycoon is promoting ‘commercial self-interest’ at the expense of fellow investors.
It added: ‘The board has a credible plan to unlock and maximise value for the benefit of all shareholders.’
Boohoo has already paved the way for a potential break-up of its business, putting in question the future of some of its brands, such as Oasis and Coast, which could be spun off or sold to boost Boohoo’s flagging share price.
Ashley’s persistent demand for a chance to overhaul Boohoo has gone as far as setting up a website ‘Boohoo deserves better’.
Last night Boohoo said Ashley was ‘conflicted’ as Frasers owns stakes in rival brands.
In the six months to the end of August Boohoo sales slumped 15 per cent to £620million as losses widened to £147million.
New chief executive Dan Finley said: ‘There have been challenges and we continue to operate in a volatile market.’
Shares were broadly flat at 30p.
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