Boohoo Group PLC (AIM:BOO) has accused Mike Ashley of being “conflicted” and having an “ulterior motive” as it urged shareholders to reject his attempts to take control of the retailer.
Ashley’s Frasers Group PLC (LSE:FRAS), Boohoo’s largest shareholder, was slated in a letter to investors for attempting to “disrupt” a strategic review by acting in its own “self-interest”.
It marks the latest turn in a spat between the two that saw Boohoo earlier this month snub Frasers by appointing Dan Finley, boss of subsidiary Debenhams, as chief executive.
“The board considers Frasers to be a competitor of all of Boohoo's core brands,” the letter continued.
“Frasers and Mike Ashley have history of exerting pressure on competitors and shareholders should be concerned about the possibility of Mike Ashley joining our board.”
Shareholders are set to meet next month, after Frasers initially slammed plans for an overhaul of Boohoo, which also owns Karen Millen and PrettyLittleThing, arguing it could not sell assets without investor approval.
Boohoo’s warnings coincided with a £39.3 million fundraiser to pay off debt and news of a wider adjusted interim pre-tax loss of £27.4 million, against £9.1 million a year earlier.
Shore Capital analysts downgraded Boohoo from a 'hold' to a 'sell' in the wake of the updates, warning the spat with Frasers caused further uncertainty.