Boohoo stands firm in new letter to Frasers Group

In what is yet another response to another open letter issued by Frasers Group, Boohoo is remaining firm on its stance that its majority shareholder should not have its resolutions approved in the company’s forthcoming general meeting.

In this latest filing, Boohoo specifically addresses Frasers’ most recent letter to the retailer’s shareholders, in which it stated that it would agree to most, not all, of the key requests that had been laid out by Boohoo in order to allow for Frasers’ board representation.

Boohoo underlined that Frasers had “refused to agree to a number of the key protections, including a standstill restriction preventing future hostile act”, details of which had been outlined in a prior filing earlier in October, issued following Frasers’ demand to have its own founder, Mike Ashley, appointed CEO of Boohoo.

It comes as Boohoo received backing from both a proxy advisor and lender which each offered their respective recommendations that Boohoo shareholders vote against resolutions set out by Frasers in the upcoming meeting due to “irreconcilable conflicts of interest”.

Boohoo has now stated that it would be willing to offer Frasers a single seat on the board if it puts forward an “appropriate candidate”, excluding its current proposals of Ashley and Mike Lennon.

In regards to Frasers’ claim that conflicts and competition were “not an issue”, Boohoo said that it wished to fully address these concerns for its shareholders, noting that it was “not for Frasers to pick and choose how it does so in order to suit its own commercial interests”.

The general meeting, which had been requisitioned by Frasers earlier this year, is due to take place December 20.