Boohoo Group PLC (AIM:BOO) has made lawyer Tim Morris its new independent non-executive chair with immediate effect, though founder Mahmud Kamani retaining significant power as executive vice chair.
Major shareholder Frasers Group PLC (LSE:FRAS), in an open letter this morning, Fraser said it has requisitioned a new shareholder meeting to oust Kamani, saying recent events at the fast fashion retail "should leave shareholders in no doubt - Mahmud Kamani ...must go".
Boohoo said in its own statement that newly promoted Morris, who has sat on the board as a non-executive director since 2021, will be charged with overseeing a strategic review of the business carried out by new finance and operations chief Dan Finley.
As executive vice chair, Kamani will continue his day-to-day executive role, the online retailer said, as he "is an integral part of the leadership team and is currently focussed on the group's young fashion businesses".
Frasers, which owns a 27% stake, wants Boohoo shareholders to vote to appoint Mike Ashley and restructuring expert Mike Lennon as directors, with a previously arranged shareholder meeting date set for Friday 20 December.
Frasers now also wants a second meeting to allow shareholders to choose whether to retain or remove Kamani.
Shares in Boohoo, which last week said Frasers' Ashley had an “ulterior motive” in his efforts to take control as Frasers is a competitor of all of its core fashion brands, rose 1% to 30p in early trading on Thursday.