Boohoo appoints Debenham boss as CEO in Mike Ashley’s stupidity

Boohoo has appointed Debenhams boss Dan Finley as its new CEO, rejecting top shareholder Frasers’ call for the group to appoint retail magnate Mike Ashley.

Finley is an insider, as Debenhams’ name and website operations were acquired by Boohoo when the group went into administration in 2021.

Boohoo said Finley’s selection was unanimously supported by the board and recognized the ‘phenomenal success that Debenhams has enjoyed’ under his leadership.

Frasers Group last week called for Boohoo investors to vote on Ashley to replace John Lyttle as CEO, calling it the “best solution” to the company’s “leadership crisis”.

In an open letter, the owner of Sports Direct accused Boohoo’s board of ‘obstruction’ and failing to ‘meaningfully address’ his ideas for management representation.

Frasers said management had presided over “large-scale value destruction” and had lost the ability to successfully manage the business and its investments.

Boohoo denied ignoring and delaying its response to the proposals, saying Frasers had “formally excluded” Mr Ashley from the CEO role on October 9.

Frasers declined to comment on Finley’s appointment.

Alistair McGeorge, vice chairman of Boohoo Group, said Finley has “successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, equity-poor and high-growth marketplace.”

PrettyLittleThing boss Umar Kamani, who was also flagged as a potential candidate for the Boohoo job, said in a statement on Instagram: ‘Great appointment and will certainly make many positive changes for the benefit of all shareholders. The beginning of a new and exciting era for the Boohoo group.’

Lyttle announced a fortnight ago that he was stepping down after five tumultuous years at the fashion brand, whose share price has fallen more than 90 percent since peaking at more than 400 pence in 2020.

Boohoo, which owns Karen Millen and PrettyLittleThing, enjoyed meteoric growth during the early days of the Covid-19 pandemic as tough lockdown restrictions on physical stores pushed Britons to buy their clothes online.

Sales slowed and then shrank as restrictions eased, cost-of-living pressures mounted and competition from rivals like Shein abounded.

During the six months ending in August, the company’s turnover fell 15 percent year-on-year to £620 million.

Finley told investors: “I am excited about the opportunities I see in becoming CEO of Boohoo Group. We have brilliant brands and people, supported by best-in-class infrastructure.”

Boohoo shares were 0.95 percent higher at 29.9 pence on Friday morning, taking their losses since the start of the year to around 19 percent.