Frasers targets son of Boohoo co-founder as dispute intensifies
By Abigail Townsend
Date: Thursday 23 Jan 2025
(Sharecast News) - Mike Ashley's Frasers Group has launched its latest salvo at Boohoo Group, just a day after shareholders voted down its attempt to oust co-founder Mahmud Kamani.
In an open letter to investors, Frasers - the fast fashion retailer's largest shareholder and a long-term critic - flagged "certain troubling matters" concerning Kamani's son Umar, the founder of Boohoo-owned brand PrettyLittleThing.
It claimed Umar was providing consultancy services to PrettyLittleThing for undisclosed fees.
"Frasers remains deeply troubled by Boohoo's governance practices and lack of transparency of material arrangements," it wrote.
It alleged Umar had identified his role as being responsible for "steering PrettyLittleThing forward" and was receiving payments in excess of £2m annually from the brand.
Boohoo took full control of the brand in 2020 in a deal worth up to £323.8m.
It concluded: "Frasers therefore asks Boohoo again to urgently provide full details of Umar Kaman's consultancy arrangement, including the remuneration that [he] is receiving, for the benefit of of all Boohoo shareholders."
The letter is the latest salvo in a bitter dispute between Frasers and Boohoo. Frasers has long been highly-critical of the business, claiming it is being mis-managed, and wants major changes to the board.
Ashley first looked to be installed as chief executive last year. When that was rejected, he sought seats on the board for himself and Mike Lennon, a restructuring specialist. Shareholders voted against that just before Christmas.
Frasers then moved to remove Kamani as a director. Kamani stepped down as chair in November, with a new independent chair named. But Frasers wanted him to quit the board altogether, arguing that "his title might have changed but his grip on the company has not".
However, that was voted down on Tuesday by an overwhelming majority of 63%. Frasers holds a 27% stake in the retailer.
At the time, chief executive Dan Finley said: "Once again, our shareholders have spoken. We want to put this disruption and distraction behind us."
Boohoo has yet to respond to Fraser's letter, which was published after markets closed on Wednesday evening.
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