Mike Ashley has put himself forward to be the next CEO of Boohoo Group plc, in order to solve what he called a “leadership crisis” at the Manchester-based online fashion firm.

Last week Boohoo said CEO John Lyttle planned to step down as the company launches a review of its options to revive its flagging share price, which stands at less than a tenth of its value four years ago.

The company said its board would “undertake a review of options for each division to unlock and maximise shareholder value,” and also announced £222 million in new debt financing. 

Ashley, whose Frasers Group is Boohoo’s largest shareholder with 27% of its shares, expressed dissatisfaction with Boohoo’s management and its failure to engage with him in an open letter to the board, and called for a shareholder vote to elect himself the new CEO. 

“In the face of persistent failure by the Board to meaningfully engage on this subject and in light of the other above-mentioned major concerns, Frasers has been left with no option but to take action itself in order to provide a solution to boohoo’s leadership crisis,” the letter said. 

“Therefore, Frasers is requisitioning a general meeting of the Company. It is critical for boohoo’s future success that shareholders urgently be given the opportunity to appoint  to the Board experienced individuals capable of delivering the necessary changes to deliver long-term value for all shareholders.”

Ashley has proposed that he become CEO while Mike Lennon, an experienced restructuring professional with Kroll, joins the board as a director. 

The letter concludes: “The action we have taken today is in the best interests of the Company, its shareholders and its stakeholders. The Board appointments proposed by Frasers are now the only way to set a new course for boohoo’s future. Frasers urges boohoo shareholders to vote in  favour of its proposals.” 

Boohoo said it had received the request for a shareholder meeting and was “is in the process of reviewing the content and validity of the Requisitions with its advisers.”

It said a further announcement would be made in due course and urged shareholders to take no action.