Manchester online fashion firm Boohoo Group is resisting retail billionaire Mike Ashley’s call to appoint him CEO, saying his presence on the board could raise conflicts of interest. 

Ashley, whose Frasers Group is Boohoo’s largest shareholder with 27% of its shares, assailed the fashion firm publicly on Thursday with charges of mismanagement and said he would be the best leader to revive the company whose shares trade at a tenth of their value four years ago.

Boohoo said on Friday it was reviewing Frasers’ call for a shareholder vote on the matter, but said Ashley’s ownership stake in rival fast-fashion firm ASOS raised some issues. 

“As shareholders will be aware, Mr Ashley is a 73% shareholder in Frasers; in addition, Frasers owns a 23.6% stake in ASOS plc, and both Frasers and ASOS operate in similar markets to boohoo. These are important facts that need to be taken into account and carefully considered by the Board,” Boohoo said in a statement. 

“Whilst the Board remains willing to discuss Board representation with Frasers in a constructive manner, it has been clear with Frasers that before any appointment can be made, appropriate governance will be required to protect the Company’s commercial position and the interests of other shareholders. Boohoo has sought assurances from Frasers in this regard and they have not to date been provided.”

Earlier this month Boohoo said CEO John Lyttle planned to step down as the company launches a review of its options to revive its flagging share price, but would stay in place until a successor was found. 

“The separate appointment of a CEO is a critical Board decision which requires careful consideration and proper governance,” Boohoo said on Friday. “A process, overseen by the Board, and which started prior to the meeting with Frasers on 18 October, is well underway and John Lyttle, the current CEO, will remain in the role until its conclusion.”

Boohoo said it will publish its interim results in November and advised shareholders to take no action in respect of Frasers’ proposals.