Boohoo calls in Debenhams chief in snub to Mike Ashley

Boohoo has appointed a former JD Sports executive as its new boss today in what will be seen as a snub to Sports Direct tycoon Mike Ashley.

In a statement to the market, the troubled fast-fashion firm said Dan Finley, who currently runs its Debenhams division and previously spent a decade at JD Sports, would take over with “immediate effect.”

“The Board of Boohoo was unanimous in its decision to appoint Dan Finley as CEO. Dan is one of the outstanding leaders in a new generation of digital retailers,” Alistair McGeorge, Boohoo Group Deputy Chairman, said.

“Dan and his team have successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth  marketplace.”

The move comes after former chief John Lyttle stepped down abruptly last month as the firm grappled with a mounting debt pile and kicked off a review of its stable of brands.

Finely’s appointment will be a blow to Frasers Group which had been lobbying the board for Ashley to take the reins.

Frasers, which owns over 25 per cent of Boohoo, wrote to the board last month accusing it of “long-term mismanagement” and “value destruction“.

“Frasers firmly believes that these appointments are in the best interests of Boohoo, its shareholders and its stakeholders,” Frasers wrote.

“The board appointments proposed by Frasers are now the only way to set a new course for Boohoo’s future. Frasers urges Boohoo shareholders to vote in favour of its proposals.”

Frasers also criticised Boohoo for “the impending £125m of cost savings that were first announced to the market in October 2023”, which “appear to have been eroded by abysmal go-to-market performance.”