Frasers Group and Boohoo in fresh clash over Kamani

(Sharecast News) - Frasers Group, the largest shareholder in Boohoo with a 28.01% stake, intensified its call for the removal of Boohoo's executive chairman Mahmud Kamani on Thursday. In an open letter to Boohoo shareholders, Frasers urged them to vote for Kamani's removal, and to appoint Mike Ashley and James Lennon to the board at an extraordinary general meeting set for 20 December.

Frasers framed the decision as a critical choice between "winning with Mike Ashley or losing with Mahmud Kamani", emphasising that it saw Kamani's leadership as no longer aligning with the best interests of shareholders or the company.

At the same time, Boohoo announces significant governance changes, appointing Tim Morris as independent chair, replacing Kamani in that role, while Kamani transitioned to executive vice chair.

It said the restructuring was part of a broader effort to improve corporate governance following a recent business review.

Morris's appointment coincided with Boohoo's successful refinancing, a £39.3m fundraising effort, and the installation of Dan Finley as chief executive officer.

It said Kamani had agreed to a series of undertakings aimed at addressing shareholder concerns about conflicts of interest and governance.

They included assurances that he would not engage in competitive activities, make an offer for the company, or disrupt boohoo's operations.

Notably, Kamani also waived his salary for the next 12 months and committed to arm's-length dealings in related-party transactions.

"I am delighted to be appointed by the board as chair of Boohoo," said Tim Morris.

"My appointment follows a series of decisive steps taken by the board since launching its business review, including the completion of the refinancing, the appointment of Dan Finley as our new CEO and the successful fundraising.

"I am excited to lead Boohoo through the next phase of its development, alongside Dan and the wider board, with the focus on delivering maximum value for, and protecting the interests of, all shareholders."

Reporting by Josh White for Sharecast.com.