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Newcastle United cut ties with Mike Ashley three years ago - but he is still facing hostilities in the retail world.
Fashion giant Boohoo have ordered its shareholders to vote against Mike Ashley being allowed to sit on the company’s board of directors.
Former Newcastle United owner Ashley sold the Tyneside club in October 2021 but remains a major player in the retail world. Frasers Group, the 60-year-old’s public entity which owns several leading brands, owns a 28 per cent stake in Boohoo.
Last week, Frasers faced the embarrassing reality of being relegated from the FTSE 100, an index featuring the UK’s most capitalised public companies. Losing 31 per cent of its share price over the past year caused Ashley’s powerhouse to drop out of the illustrious list.
Now they are facing a battle against Boohoo as the fashion brand looks to stop Ashley from wrestling control. The Manchester-based business was founded by Mahmud Kamani and Carol Kane and quickly became a leading online retailer, offering trendy clothes at bargain prices.
Recent years have seen increased pressures from Chinese competitors - with Ashley keen to swoop in. However, Boohoo argue that appointing him to the board would be a “conflict of interest” given his other business ventures.
The International Shareholders Services (ISS), the world's largest advisor on shareholder voting, have sided with Boohoo in their battle against Ashley - marking the latest in a long line of recent defeats for the former Toon supremo. A statement read: “International Shareholders Services (ISS), the world's largest advisor on shareholder voting, has recommended that shareholders vote against the appointment of Mike Ashley and Mike Lennon.”
“ISS states that Frasers has offered a superficial view of performance and no specific plans for change and the two Frasers candidates, Mike Ashley and Mike Lennon, have real conflicts of interest, concluding that board change at Boohoo is not warranted.
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“We are writing to you today to remind you why your vote matters and why the board is unanimously recommending that you VOTE AGAINST both resolutions. The board is of the view that in pursuing this campaign, Frasers is acting only in its own commercial self-interest and not in the interests of other shareholders.”
“The board has been clear with Frasers that, if Frasers wishes to make a considered proposal for a suitable independent candidate to be appointed to the board as a non-executive director and will provide the legal and compliance commitments which the board has sought, the board would be minded to appoint a suitable non-executive director at Frasers' request.
“But the board rejects in the strongest terms the strong-arm tactics used to pursue Frasers' demands to date and does not accept Frasers' proposal that Mike Ashley or Mike Lennon are suitable independent candidates for appointment to your board.”
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