Boohoo appoints Dan Finley as CEO
By Michele Maatouk
Date: Friday 01 Nov 2024
(Sharecast News) - Boohoo said on Friday that it has appointed the current boss of Debenhams, Dan Finley, as its new chief executive, just days after shareholder Frasers Group urged the online fashion retailer to replace its CEO with Mike Ashley.
Finley succeeds John Lyttle, whose departure was announced earlier this month.
"The board continually considers long-term succession planning for key executive roles. Dan's appointment as CEO recognises the phenomenal success that Debenhams has enjoyed and reflects the evolution in strategic direction of the group," it said.
Before joining Debenhams, Finley spent a decade as group multi-channel director at JD Sports, "where he delivered unprecedented digital growth as JD Sports became a global multi-channel leader and entered the FTSE 100," Boohoo said.
He joined Boohoo as CEO of Debenhams in January 2022, following the acquisition of the brand out of administration for £55m.
Deputy chairman Alistair McGeorge said: "The board of boohoo was unanimous in its decision to appoint Dan Finley as CEO. Dan is one of the outstanding leaders in a new generation of digital retailers. Dan and his team have successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth marketplace.
"Before Debenhams, Dan had a track record of phenomenal success in online retail during his 10 years at JD Sports. The Board looks forward to working with him, as we continue the review of options to unlock and maximise shareholder value."
Last week, Frasers Group urged Boohoo - in which it owns a 27% stake - to appoint retail tycoon Mike Ashley as its chief executive.
Boohoo hit back, however, suggesting that any such appointment could be a conflict of interest.
At 0940 GMT, Boohoo shares were up 3.6% at 30.68p.
Russ Mould, investment director at AJ Bell, said: "Mike Ashley has been defeated in his quest to run Boohoo after the clothing retailer said it had appointed a new leader from within.
"While relatively young for a CEO at 41, Finley's background looks solid, having spent a decade as a JD Sports director and then nearly three years helping to transform Debenhams as a digital entity. Clearly that's not a patch on Ashley's extensive retail experience, but it's the right type of CV to grab the top job for a company of Boohoo's size.
"Finley will need some bright ideas to put Boohoo back on the right track. The fact a strategic review is already underway with suggestions that certain brands will be sold means that the new boss can hit the ground running. Normally it would take a period of six months for a new CEO to start the job and think about the future structure.
"That doesn't mean all the big decisions have been made before Finley gets his new office. If anything, he is promoted just at the right time when a lot of preparatory work has been done on each division's prospects, but he gets to make the final call on where Boohoo goes next.
"The challenge is immense. The previous boss, John Lyttle, spent years trying to fix Boohoo without any success. Finley will need to be creative, have a sharp focus, and think differently to his predecessor.
"There is also the risk that Mike Ashley flexes his muscles as a major shareholder via Frasers to cause disruption if he doesn't like the new appointment. Ashley isn't one to mince his words so it will be interesting to get his views on Finley's suitability for the role."
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