Sports Direct-owner Frasers Group PLC (LSE:FRAS) is not backing down in its campaign to appoint founder and figurehead Mike Ashley as Boohoo Group PLC's (AIM:BOO) chief executive.
Boohoo snubbed its major shareholder Frasers by appointing an internal hire, the Debenhams boss Dan Finley, to the top spot last week.
Shore Capital Markets’ retail expert Clive Black predicted that this was not going to be the end of the ordeal. His hypothesis has been vindicated in a fresh open letter published by Frasers.
The scathing missive kicked off by accusing Boohoo’s board of having an “utter disregard for shareholder views”.
It stated: “We continue to believe strongly in the potential of the Boohoo business and the quality of its brands.
“However, the directors have pushed Boohoo into a terrible refinancing, while refusing to engage properly with Frasers on it.
“They have then rushed out a CEO appointment to try to block the say of shareholders. This has to stop. What will they try next? Desperate people do desperate things.”
Frasers requested that Boohoo not engage in any asset disposals without shareholder approval and confirmation from an independent global adviser or investment bank that any disposal would be fair to shareholders.
The company also called on Boohoo’s non-executive directors “to consider their personal duties. If it turns out that they have breached those duties, Frasers will not hesitate to push for legal action against them personally.”