Mike Ashley slams ‘desperate’ Boohoo following CEO snub

Frasers Group’s Mike Ashley has labelled Boohoo Group “desperate” after the online retailer promoted Debenhams boss Dan Finley to CEO instead of appointing him to the role.

Frasers, which owns brands including Sports Direct and Flannels, has built up a 27% share in Boohoo.

Last month, the group published a letter attacking Boohoo’s management and calling for Ashley to be appointed as a replacement for John Lyttle, the retailer’s outgoing CEO.

Frasers claimed it would be “in the best interests of Boohoo, its shareholders and its stakeholders” to appoint Ashley “without delay”, also sharing that the fashion retailer had been the victim of “long-term mismanagement” and “value destruction”.

However, Boohoo did not heed the call and on Friday it announced that Dan Finley was being promoted to CEO.

In response, Ashley has since told The Sunday Times: “Independent shareholders be warned, desperate people do desperate things.”

The move follows Lyttle’s announcement in mid-October that he would step down after five years as boss.

At the same time, Boohoo revealed plans for a strategic review, sparking speculation regarding a potential break-up of the business.

Boohoo also reported that revenues had dropped by 15% to £620 million for the six months to 31 August.

Finley said Boohoo has “brilliant brands and people”, and that he will look to “extend” the business model pursued by Debenhams in recent years across the group.

Boohoo bought Debenhams out of administration in a £55 million deal in 2021.