Boohoo (LON:BOOH) Group PLC (AIM:BOO) directors have accused Mike Ashkley's Frasers Group PLC (LSE:LON:FRAS) of trying to destabilise its plans and "acting solely in its own commercial self-interest" in a letter to shareholders ahead of another vote.
Just before Christmas, Sports Direcr owner Frasers, which owns a 26% stake in Boohoo, was thoroughly defeated in a shareholder vote that was designed to secure two spots on the board of the online fashion retailer.
The meeting on 20 December saw 64% vote against appointing Frasers’ figurehead Ashley as a director and against appointing restructuring expert Mike Lennon as the second director.
Even before that meeting, Frasers had requisitioned a second shareholder vote, to be held on Tuesday January 21, to remove Boohoo founder Mahmud Kamani as a director of the company and propose different candidates.
Frasers said at that time that it took note of Boohoo’s proposal for board candidates other than Ashley or Lennon and said it "will put forward a highly qualified candidate in due course".
In the letter to shareholders, the Boohoo board said Frasers actions seemed "designed to destabilise Boohoo and disrupt the board's plans to unlock and maximise shareholder value through the business review that it announced in October.
"The board is of the view that in pursuing this campaign, Frasers is acting solely in its own commercial self-interest," the letter added, noting other instances in which Frasers has "behaved in similar ways in relation to other companies".
The board letter called for shareholders to vote against all proposals.