Frasers Group PLC (LSE:FRAS) shares fell to a two-year low on Monday as the Sports Direct owner’s bid to bag seats on Boohoo Group PLC (AIM:BOO)’s board took yet another turn.
Boohoo earlier in the day unveiled backing from proxy advisor Institutional Shareholder Services in urging shareholders to reject Frasers’ advance.
Frasers founder Mike Ashley subsequently lashed out at Boohoo in response, accusing its board in an open letter of “gross mismanagement”.
He wrote to Boohoo investors: “What has the board been doing to create such a catastrophic mess of your company, driving the share price down by 90% in five years?
“When I look at boohoo, I see brands that are underperforming and no clear strategy to halt the decline.
“I see panic-driven mismanagement resulting in reckless decisions that are obliterating shareholder value and jeopardising the company’s future.”
Boohoo and Frasers have clashed since the former launched a review earlier this year, which in turn prompted speculation it could sell off subsidiaries such as Debenhams or PrettyLittleThings.
Ashley added such “fire sales” of Boohoo’s assets needed to be avoided and that Boohoo had resorted to “distractions” in “painting [him] a threat”.
“My sole motivation is helping Boohoo and its shareholders achieve a better future and prevent any dishonest profiteering off the Boohoo shareholders,” he said.
Frasers shares dipped 2.2% to 624p on Monday and to their lowest since late 2022.