Tensions heighten: Frasers demands investigation into Boohoo’s Kamani amid loan scandal

Frasers Group has demanded an investigation and suspension of Mahmud Kamani, the executive vice chair of Debenhams Group, after he was accused of making loans to suppliers.

The retail group, owned by Mike Ashley, issued an open letter to Debenhams following the publication of an article by the Telegraph last week that suggested Kamani, founder of Debenhams Group – formerly Boohoo Group –, had been diverting funds through loans made to suppliers of the company, including PDQ Textiles, via Pinstripe Clothing, a private company he co-owns.

According to the media outlet, Kamani had been directing the repayments of these loans through Mark-up Amounts away from Boohoo and into his personal accounts or the accounts of other companies he owns. Next to this, Kamani was also accused of demanding discounts from PDQ for late payments, and was said to have threatened to cancel orders if the company attempted to raise its prices.

In Frasers’ letter, signed by lawyers White & Case, the group said: “These allegations are very serious and damaging to the reputation of Boohoo. If proven, it appears that Mr Kamani may have breached his duties as a director of Boohoo and could also have committed various criminal offences.”

Latest accusations reignite long-standing dispute between fashion giants

Frasers, a majority shareholder of Debenhams Group, has called on the fashion retail firm to independently investigate the allegations made against Kamani and enact an immediate suspension of the executive, as well as any of his associates involved in the matter. Frasers has given Debenhams until August 15 to respond to the letter.

This latest occurrence reignites an already long-standing tension between Frasers and Debenhams, which got into a heated dispute last year over the latter’s Business Review and the way it was being handled. At the time, a disgruntled Frasers enacted a takeover attempt, submitting its own founder, Mike Ashley, as a proposed board member. This, however, fell flat, as Debenhams went on to appoint a new CEO internally and reaffirmed its commitment to its previously specified turnaround strategy.

In January 2025, Frasers’ additional proposal, to remove Kamani from Debenhams’ board, was turned down by shareholders. While this appeared to bring to an end any boardroom flare ups, Frasers later brought to the table accusations against Kamani and Debenhams of making undisclosed payments exceeding two million pounds to Umar Kamani, the founder and consultant of PrettyLittleThing and Mahmud’s son. Such funds are alleged to have been funneled into a bank account in Dubai, according to reports cited by Frasers, which added that despite repeated requests for the details of this arrangement be disclosed, none had been provided.

In its latest open letter, Frasers has requested for information related to Kamani’s newest accusations to be read and considered independently of any previous concerns it has raised in the past. The company once again underlined that it was “dissatisfied and concerned with how Boohoo has been run by its management over a considerable period of time”, before issuing its demands.