Boohoo shareholders reject Mike Ashley’s bid for board representation

Investing.com — Shareholders of online fashion retailer, Boohoo (LON:BOOH) Group Plc, have rejected a proposal by billionaire Mike Ashley for board representation, following a period of public disputes. Investors representing approximately 64% of votes dismissed the bid from Frasers Group Plc to nominate its founder, Ashley, and Mike Lennon, a specialist in company restructuring, to Boohoo’s board during a meeting on Friday.

Frasers Group owns roughly a quarter of Boohoo, according to compiled data.

The decision follows allegations from Boohoo’s largest shareholder that the company’s management has allowed poor performance and has been responsible for a decline in the retailer’s value.

Boohoo’s shares have dropped by 20% this year and have seen a decrease of about 4% since Frasers announced its investment in the company in June of the previous year.

Boohoo, which is listed on Aim and owns brands such as Debenhams, Karen Millen, and PrettyLittleThing, announced a strategic review in October that could potentially result in the company’s breakup.

Concurrently, former CEO John Lyttle resigned from his position.

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