Boohoo Shareholders Support Kamani, Reject Frasers' Bid
(Reuters) -Frasers Group, owned by British retail tycoon Mike Ashley, has failed to oust Boohoo's co-founder Mahmud Kamani from the board after the fast-fashion group's shareholders voted against the move on Tuesday.
Boohoo said 63.17% of votes cast at the general meeting opposed the removal of Kamani, who is also the company's second-biggest shareholder.
"With the clear support of shareholders, the board calls on Frasers to end its attempts to destabilise and disrupt the group," Boohoo said in a statement.
The setback for Frasers, Boohoo's top shareholder with a more than 25% stake, comes after it failed to secure seats for its founder Ashley and restructuring specialist Mike Lennon on Boohoo's board.
Frasers has been pushing Boohoo to overhaul its executive team, accusing the board of mismanagement.
Boohoo, which benefited from a pandemic boom in online shopping, has since struggled with supply chain problems, higher product returns, subdued consumer demand, and competition from rivals such as Shein and Temu, which has hurt its bottomline.
In October, the Manchester-based firm said its CEO John Lyttle would be replaced by Dan Finley. It also decided to undertake a strategic review that could see the group split up.
(Reporting by Raechel Thankam Job and Aby Jose Koilparambil in Bengaluru; Editing by Sonia Cheema)
