Frasers Group has voted to dam Boohoo’s try to alter its holding firm title to Debenhams, escalating a long-running feud between the UK retail giants.
The transfer, led by Mike Ashley’s group, which owns a 27 per cent stake in Boohoo, successfully prevented the decision from passing at a basic assembly on Friday. The movement required not less than 66 per cent of shareholder approval however was defeated after 38 per cent of votes have been forged towards it.
Boohoo, which acquired the Debenhams model out of administration in 2021, mentioned it will proceed to rebrand as Debenhams Group whatever the consequence. The corporate’s ticker image will change to DEBS on the London Inventory Alternate from Monday, though its listed title will stay Boohoo Group Plc.
Frasers Group’s CFO Chris Wootton defended the choice, saying: “When Boohoo stops destroying shareholder value, Frasers Group as its biggest shareholder will be happy to support its proposals.”
Boohoo hit again, accusing Frasers of appearing in its “own self-interest”, and noting that “it was no surprise to the board that Frasers, a major competitor to the group, has voted against the resolution”.
Dan Finley, CEO of Boohoo, remained bullish regardless of the vote: “Debenhams is back, and we continue to move forward as Debenhams Group. The successful turnaround of Debenhams is the blueprint for the turnaround of the wider group. Our best days are ahead of us and I am excited for our future.”
The tried rebrand comes amid strain on Boohoo’s core fast-fashion enterprise, which has been hit by falling gross sales, provide chain points, and questions over governance. The corporate believes leveraging the heritage and belief within the Debenhams model may revitalise its wider portfolio.
The most recent conflict follows a failed try final yr by Frasers to put in Mike Ashley and restructuring skilled Mike Lennon on Boohoo’s board. Shareholders rejected the proposals, together with a separate movement to take away Boohoo founder Mahmud Kamani as a director.
Regardless of their adversarial historical past, Frasers now insists it’s looking for “constructive engagement” with Boohoo and reiterated its need for Lennon to be granted a board seat.
“We do not see them as a major competitor to any part of our business,” the group mentioned — a declare that can do little to masks the deepening tensions between two of Britain’s most distinguished vogue retailers.
