Independent proxy adviser Glass Lewis has recommended fast-fashion retailer Boohoo’s shareholders to vote against the demands of Frasers Group at the upcoming general meeting.
In a statement published to the London Stock Exchange today, Glass Lewis said it recognised that Boohoo has “initiated significant actions” in recent months, which includes the undertaking of a business review, improvements to its balance sheet as well as leadership changes.
Recent leadership changes at Boohoo of late include the appointment of new chief executive Dan Finley in November last year and the transition of founder Mahmud Kamani from executive chair to executive vice chair.
Glass Lewis also said in the statement: “Glass Lewis concluded that these changes “should enable the company to retain Mr Kamani’s institutional knowledge and expertise while empowering new leadership to undertake initiatives that will likely be needed to improve the company’s performance”.
The demands of Frasers Group to axe Kamani as a director of the business is expected to be proposed at the upcoming general meeting on January 21, 2025.
The news also comes after Boohoo accused Frasers Group of being on a campaign “which appears designed to destabilise” the fashion retailer in its latest letter to shareholders last week.
Boohoo added that Frasers has been acting “solely in its own commercial self-interest” and called the bid to remove Kamani as a director of the business a “tactical move”.
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