Mike Ashley and Boohoo gear up for festive showdown as struggling fast fashion company taps investors for £39 million
Boohoo faces a showdown with Mike Ashley just days before Christmas, it was announced last night.
Ashley, whose Frasers retail empire owns 27 percent of the troubled fashion site, will try to install himself as CEO at an emergency meeting of investors on December 20.
Boohoo announced details of the meeting after markets closed yesterday, with the unplanned 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 CEO at a meeting in December
It also announced plans to raise up to £39.3 million from shareholders.
Boohoo urged investors to reject Ashley’s demands and reiterated its claim that the tycoon promotes “commercial self-interest” at the expense of fellow investors.
It added: ‘The board has a credible plan to unlock and maximize value for the benefit of all shareholders.’
Boohoo has already paved the way for a possible split of its business, putting into question the future of some of its brands, such as Oasis and Coast, which could be spun off or sold to boost Boohoo’s falling share price .
Ashley’s persistent demand for an opportunity to review Boohoo goes as far as setting up a ‘Boohoo deserves better’ website.
Last night Boohoo said Ashley was ‘conflicted’ because Frasers has stakes in rival brands.
In the six months to the end of August, Boohoo’s turnover fell 15 per cent to £620 million, while losses rose to £147 million.
New CEO Dan Finley said: ‘There have been challenges and we continue to operate in a volatile market.’
Shares were largely flat at 30p.
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