Boohoo Group Plc, a prominent British fashion retailer, announced on Friday the immediate appointment of Tim Morris as its new independent Chair. Simultaneously, Mahmud Kamani will assume the role of Executive Vice Chair.
These strategic changes have been unveiled following an open letter from boohoo's principal shareholder, Frasers Group Plc, requesting another shareholder meeting to discuss the potential removal of Kamani as a director.
In their official statement, boohoo clarified their decision to separate Kamani's dual roles, allowing him to maintain his responsibilities as an executive while an independent Chair is appointed. This restructuring aims to ensure the effectiveness of the Board's governance, with Kamani continuing to oversee the Group's young fashion divisions. Alistair McGeorge will continue as the Senior Independent Director, further enhancing the Board's independence.
Kamani has reiterated his commitment to clarify his relationship with the company in his capacity as a substantial shareholder in light of Morris's new role as Chair.
Boohoo emphasized that Morris's appointment is part of a series of strategic measures following their business review. These include completing refinancing processes, appointing Dan Finley as the Group CEO, and successfully raising approximately 39.3 million pounds.
Meanwhile, Frasers has actively encouraged shareholders to vote for Kamani's removal at the upcoming shareholder meeting. They assert that the leadership changes, including Kamani's removal, are in the best interest of boohoo and its stakeholders. Frasers has also recommended appointing Mike Ashley and Mike Lennon as directors at the forthcoming shareholder meeting scheduled for December 20.
It is noteworthy that in late October, Frasers had called for a general meeting to appoint Ashley and Lennon as Directors, with Ashley fulfilling the dual role of Director and CEO. However, boohoo subsequently named Finley as CEO earlier in November, succeeding John Lyttle.
On the London stock exchange, boohoo's share price rose by approximately 1.4% to 30 pence, whereas Frasers' shares experienced a decline of 1.1%, trading at 729.00 pence.
