Frasers tells Boohoo Mahmud Kamani must go: ‘His title might have changed but his grip has not’

Frasers has been quick to respond to Boohoo’s announcement that executive chair Mahmud Kamani will step back to vice chair, claiming it is not enough and he “must go”.

This morning, Boohoo’s top investor called for a shareholder’s meeting to remove Kamani as a director and to replace him with Mike Ashley and Mike Lennon.

At the same time, Boohoo announced its co-founder Mahmud Kamani was replaced as chairman by non-executive director Tim Morris with immediate effect, and would step back to vice chair.

But Frasers said the change doesn’t affect its position, and remains committed to its statement this morning, in which it said: “[The board] is ultimately run by Mr Kamani, for the benefit of Mr Kamani,” it said, adding that the board was “dysfunctional”.

“His title might have changed but his grip on the company has not. Recent events, in particular the interim results, lack of transparency and further supply chain allegations, should leave shareholders in no doubt – Mr. Kamani must go,” a Frasers spokesperson said after Boohoo’s announcement.

In its latest half-year results, Boohoo announced that revenue had fallen 15 per cent, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 10.5 per cent and net debt increased by over £100m.

This development is the latest in a line of public spats between Frasers and Boohoo, with each side accusing the other of being self-serving. The two companies have been at odds for nearly a month.

Frasers has accused the retailer of “long-term mismanagement” which has led to “value destruction“, and has criticised its £222mn refinancing, while Boohoo has called Frasers’ take on the business “inaccurate and unfair”.

Ashley has said the business would be best-placed to deliver shareholder value with him at the helm, but his attempt to become chief executive but suffered a blow when Boohoo appointed Dan Finley to the role last month.

Investors will still be able to vote on whether to appoint Ashley and restructuring specialist Mike Lennon to the board on 20 December.