Ashley calls for Boohoo chair Kamani to go

Mike Ashley’s Frasers Group has ramped up its attack on Manchester fashion firm Boohoo by demanding that co-founder and executive chairman Mahmud Kamani be kicked off the board and replaced by Ashley.

Frasers said it has asked for a second shareholder meeting of Boohoo for a vote on the removal of Kamani as a director. A meeting is already scheduled for 20 December for shareholders to vote on the appointment of Ashley and his his restructuring professional associate Mike Lennon as directors.

“Frasers firmly believes that these appointments and Mr. Kamani’s removal are in the best interests of Boohoo, its shareholders and its stakeholders,” Frasers said in an open letter published on Thursday, entitled “A simple choice: win with Mike Ashley or lose with Mahmud Kamani.”

At the same time on Thursday, Boohoo named non-executive director Tim Morris as independent Chair with immediate effect. In that role, he will be responsible for overseeing the company’s recently announced business review, which will be led by new CEO Dan Finley.

It said Kamani will become Executive Vice Chair with immediate effect. Boohoo said the division of the chair role between independent and executive functions would allow Kamani to continue his day-to-day executive role, currently focused on the company’s young fashion businesses.

It said Kamani has also reconfirmed his agreement to provide assurances that he will have no involvement in the commercial decision making of any competitor of Boohoo and will not make an offer for the company or any of its assets. He also agreed to waive his current salary in Boohoo for the next 12 months.