(Reuters) -Billionaire Mike Ashley-owned Frasers, the top investor in Boohoo, has urged the British online fashion retailer to “publicly confirm” that no asset disposals are conducted without prior shareholder approval.
The request from the British sportswear and apparel retailer comes days after Boohoo appointed Dan Finley as its new CEO, a move that was a setback for Frasers, which had attempted to appoint Ashley, its controlling shareholder, for the role.
Last month, Boohoo had said that the then CEO John Lyttle would step down from the top role and also announced a strategic review that could see it broken up.
Frasers, which holds a 27% stake in Boohoo, said it had been left with no choice but to insist on shareholder approval in light of the Boohoo board’s refusal to allow shareholders to vote on key decisions such as the CEO appointment.
“Frasers firmly believes that the restriction on disposals without shareholder approval and the requirement for confirmation from an independent global adviser or investment bank are required in order to protect the interests of Boohoo, its shareholders and its stakeholders,” Frasers said in a letter.
Boohoo declined to comment.
Frasers also owns stakes in multiple retailers including British luxury brand Mulberry, which it last month unsuccessfully attempted to buyout, as well as British electronics retailer AO World and Hugo Boss.
(Reporting by Aby Jose Koilparambil and Prerna Bedi in Bengaluru; Editing by Sonia Cheema)
