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Boohoo has reportedly blocked journalists from attending its boardroom showdown with Mike Ashley, following an ongoing battle over the fast-fashion company’s governance.According to The Telegraph, Boohoo told journalists that they will not be able to attend its annual general meeting today (20 December), where shareholders will vote on Frasers’ demands to install Ashley to the board.
The Telegraph reported that only shareholders are expected to be admitted to the meeting, the results of which are set to be published later today.
The vote follows a months-long row between Boohoo and its largest shareholder Frasers over the leadership of the group.
Frasers is looking to install founder Ashley to the Boohoo board alongside Michael Lennon, a restructuring expert. The company also called for Boohoo’s co-founder Mahmud Kamani to be ousted.
Ashley’s company has written to Boohoo shareholders five times to urge them to back its proposal at a meeting this Friday, claiming the pair could help revive the fast fashion retailer.
In one open letter to shareholders, Ashley noted that Boohoo’s board of directors have been asked to remove Kamani, saying “recent events, in particular the results, lack of transparency and further supply chain allegations, should leave shareholders in no doubt – Mr. Kamani must go”.
Boohoo in turn argued that Ashley has “ulterior motives”, suggesting Frasers is potentially looking to disrupt its turnaround plans to acquire its assets at a lower price, and has urged shareholders to vote against the resolutions.
Earlier this month, the retailer said that independent proxy adviser Institutional Shareholder Services (ISS) recommended shareholders vote against Fraser’s bid for board representation.
It said that the ISS states that Frasers has offered a “superficial view of performance and no specific plans for change”. It also highlighted what it thought were “potential conflicts of interest” from its proposed board members Ashley and Lennon.
Frasers currently holds a 28% stake in Boohoo, and if this goes over 30%, Frasers would be forced to make a formal bid for Boohoo under takeover rules.
Boohoo has been contacted for comment.
