Boohoo raises £40m amid ongoing spat with Mike Ashley

(Sharecast News) - Troubled fast-fashion retailer Boohoo on Monday confirmed it had managed to raise around £40m in funding to bolster its balance sheet amid a row with major shareholder, Mike Ashley's Frasers Group. The company raised approximately £38.9m from institutional investor subscriptions and £0.4m from retail investors.

Ashley, whose empire started with the Sports Direct discount chain, has demanded a seat on the Boohoo board after also insisting he be installed as chief executive as being snubbed in favour of a company insider. The retailer has responded by asking shareholders to reject this, saying he is "not suitable" for such a role.

"Frasers and Mike Ashley have history of exerting pressure on competitors, and shareholders should be concerned about the possibility of Mike Ashley joining our board," it said in a circular to shareholders last week.

Frasers has accused Boohoo of mismanaging the business and was highly critical of a £222m refinancing. Investors will vote on Ashley's appointment, as well as restructuring specialist Mike Lennon, on December 20.

Reporting by Frank Prenesti for Sharecast.com