Manchester online fashion firm Boohoo Group has named insider Dan Finley as its new Chief Executive Officer with immediate effect, snubbing billionaire investor Mike Ashley who had put himself forward for the job.

Finley made his name at JD Sports and was most recently CEO of Debenhams, the retailer Boohoo bought out of administration in 2021. He succeeds John Lyttle, who announced his plan to step down last month. 

“Dan’s appointment as CEO recognises the phenomenal success that Debenhams has enjoyed and reflects the evolution in strategic direction of the Group,” Boohoo said. 

The appointment is a snub to Ashley, whose Frasers Group is Boohoo’s largest shareholder with 27% of its shares. He assailed the fashion firm publicly last month 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.

Finley, 41, spent a decade as Group Multi Channel Director at JD Sports, and joined Boohoo as CEO of Debenhams in January 2022. 

Alistair McGeorge, Boohoo Group Deputy Chairman, 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.”

Finley said: “I am excited at the opportunities I see ahead as I become CEO of Boohoo Group. We have brilliant brands and people, underpinned by best-in-class infrastructure. Under my leadership we have had great success with Debenhams and I look forward to exploring opportunities to extend this business model across the Group. I will dedicate myself totally to working with my colleagues to unlock significant value for all shareholders.”

Boohoo said it would write to shareholders in relation to Frasers’ proposals to hold a vote to elect Ashley CEO, and said until then “shareholders are strongly advised to take no action in respect of the proposals.”