The British fashion retailer Boohoo opposes billionaire Mike Ashley's demand for a seat on the company's board. In a letter to shareholders published on Wednesday, Boohoo stated that the CEO of Frasers is "not suitable" for the board. Boohoo's long-time rival and also the company's largest shareholder recently harshly criticized the fashion retailer's business policy, particularly regarding a refinancing of 222 million pounds.

The shareholders are set to vote on December 20th on whether, in addition to Ashley, the restructuring expert Mike Lennon will be appointed to the board. Boohoo urged investors to have concerns about Ashley's influence on the competitor. Additionally, the appointment of Lennon, who has worked for Frasers in several insolvency proceedings, is questionable and he is “not a suitable candidate” for the board.

The stock of Boohoo has plummeted by over 90 percent since its peak during the pandemic boom. Rising costs and intense competition with players like Shein and Temu are weighing on the company. Boohoo recently appointed an internal manager as the new CEO – a decision that Ashley, who demanded the position himself, is likely to view as an affront.

Frasers has warned Boohoo not to conduct any business sales without shareholder approval after the fashion company announced it would initiate a strategic review. Boohoo also plans to raise fresh capital of around 40 million pounds.