Boohoo Group PLC (AIM:BOO) has appointed Dan Finley, the current boss of its Debenhams retail chain, to the head of Boohoo’s entire operations.
Finley succeeds John Lyttle, who announced his retirement in October.
The news will be given a cold reception from minority shareholder Frasers Group PLC (LSE:FRAS), which has petitioned for its founder Mike Ashley to be given the role.
Frasers, which owns a 27% stake in Boohoo, publicly admonished Boohoo’s board in an open letter, saying it has “lost its ability to manage Boohoo’s business and investment”.
Appointing Ashley “is the best solution to Boohoo’s leadership crisis”, said Frasers.
Boohoo said it “will be writing to shareholders in relation to (Frasers’) proposals in due course”.
Finley spent 20 years as a director at JD Sports Fashion PLC (LSE:JD.).
He has an unenviable task on his hands. He is taking over a company which has collapsed in market value in the past five years and one that analysts are sceptical can be turned around.
"The board of Boohoo was unanimous in its decision to appoint Dan Finley as CEO,” said Boohoo’s deputy chairman Alistair McGeorge. “Dan is one of the outstanding leaders in a new generation of digital retailers.
“Dan and his team have successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth marketplace.”
"I am excited at the opportunities I see ahead as I become CEO of Boohoo Group,” said Finley. “We have brilliant brands and people, underpinned by best-in-class infrastructure.
“Under my leadership we have had great success with Debenhams and I look forward to exploring opportunities to extend this business model across the group.”