Boohoo has announced the appointment of a new group chief executive officer following the shock departure of John Lyttle just two weeks ago. And no, it’s not Mike Ashley. Is Dan Finley the right man for one of the toughest, and now most controversial jobs in retail?
It’s been a busy few weeks for Boohoo. This most recent period of unrest and scrutiny kicked off with the departure of boss John Lyttle, followed by rumours of a breakup of the group’s brands, and was turned upside down by a surprise bid from Mike Ashley to become the next chief executive officer of the fast-fashion retailer.
Having hit the headlines frequently due to deepening losses and pressure from shareholders, one source called Boohoo’s latest battle with Frasers over the future leadership of the business a “popcorn moment”, as the drama at the business continues to ramp up.
But after today’s announcement by the group that Dan Finley is taking over from John Lyttle as chief executive officer with immediate effect, Boohoo is evidently making moves towards trying to steady the ship, and throwing Ashley’s offer back in his face simultaneously.
Who then is Dan Finley − the man thrust into the middle of the fight between Boohoo and Frasers? Is he the right man for the job? And what will Frasers and Mike Ashley do next?
A fresh face
Boohoo Group deputy chair Alistair McGeorge said today that Finley’s appointment was a unanimous decision and called the new Boohoo boss an “outstanding leader” to take the business forward.
The fashion retailer also said in a statement that his appointment comes after consideration about finding the right “long-term successor”, hinting at Finley’s extensive new responsibilities to drive the future turnaround and growth of Boohoo once again.
Most recently, Finley was chief executive at Debenhams and has been at the helm since January 2022, when he was appointed to turn around and “digitally transform” the brand under the Boohoo Group’s ownership – so it’s clear he’s up for taking on the challenge of a revival once again.
With experience at Peacocks and Bonmarche as well as a 10-year stint at JD Sports on his CV, Shore Capital director Clive Black called his credentials “robust” as he appears on paper to be a good fit for the role.
“Mr Finley has experience in the apparel online manor, having spent 10 years at JD Sports,” he said. “More latterly, Finley has been in charge of one of the few more positive areas of the recent Boohoo ecosystem, Debenhams.”
Peel Hunt’s John Stevenson previously told Retail Week that the group needed a chief executive officer who was prepared to “reinvigorate PrettyLittleThing and Boohoo”, and had a slightly different skillset to Lyttle - something Finley seems to have under his belt.
One source said Finley has made a “good early impression” among analysts and called his CV “stellar”, proving there are high hopes that Finley is exactly what Boohoo needs at this point.
A spanner in the works
The appointment of Finley does however throw a spanner in the works for majority shareholder Mike Ashley, who recently published an open letter to Boohoo’s board demanding to be the one to replace John Lyttle after his exit.
Despite Frasers Group claiming that there is “no stronger candidate” than Ashley who was in a position to replace Lyttle “as soon as possible”, it’s clear that Boohoo didn’t quite agree.
Black points out that the appointment of Finley feels a little rushed with him being appointed to the board “in due course”.
One senior fashion retailer echoed this and said today’s announcement sniffs of desperation at the group and a reaction to Mike Ashley rather than being a considered appointment.
They added that the quick appointment of a successor suggests that either an extensive recruitment process did not take place, or that there were no interested candidates.
Another source close to Boohoo said Finley is not particularly popular internally within the group, but that he is a “safe bet” for the business as it attempts a turnaround.
PrettyLittleThing chief executive and Boohoo shareholder Umar Kamani called Finley’s appointment “great” earlier today and said that it will benefit shareholders, but whether or not this truly marks a “new and exciting era” for the group remains to be seen.
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