Mike Ashley’s Frasers Group said it will put forward “a highly qualified candidate” to join Boohoo Group’s board, after Boohoo shareholders rejected Frasers bid last week to put Ashley and restructuring expert Mike Lennon on the board of the Manchester-based fashion retailer. 

Shareholders with just under 64% of Boohoo’s shares voted against the appointments of Ashley and Lennon in a meeting held on Friday. Ashley’s Frasers Group owns about 27% of Boohoo’s shares.

Frasers said it respects the views of the independent shareholders, but takes note of Boohoo’s invitation to propose a board candidate other than Ashley or Lennon. 

Frasers, which is looking to shake up the management of Boohoo and reverse more than three years of share price declines, said it will put forward a candidate in due course and expects Boohoo’s board “to uphold their commitment without hesitation or delay.”

Separately Boohoo, which is undergoing a strategic review to boost its flagging performance, said it completed the sale of its London office, located on Great Pulteney Street in Soho, for £49.5 million in cash to Global Holdings UK Limited, an independent property fund. 

Boohoo said part of the proceeds will be used to pay down, in full, the remainder of a term loan which was due for repayment in August 2025. It said that would leave the company with a £125 million revolving credit facility which is “sufficient for its needs going forward.”