Boohoo Shareholders Reject Mike Ashley's Board Representation Proposal

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Boohoo Shareholders Reject Mike Ashley's Board Representation Proposal

Investing.com -- Shareholders of online fashion retailer Boohoo Group Plc have rejected billionaire Mike Ashley's bid for a seat on the board following a period of public dispute. During a meeting on Friday, investors representing approximately 64% of the votes turned down the proposal to nominate Ashley, founder of Frasers Group Plc, and restructuring expert Mike Lennon to Boohoo's board.

According to data collected, Frasers Group owns about a quarter of Boohoo. This decision comes after claims from Boohoo's largest shareholder that the company’s management allowed poor performance and is responsible for the decline in the retailer's value.

Boohoo's shares have lost 20% this year and have declined about 4% since Frasers announced its investment in the company last June. Listed on Aim, Boohoo owns brands such as Debenhams, Karen Millen, and PrettyLittleThing, and announced in October that it had initiated a strategic review that could potentially lead to a breakup of the company. At the same time, former CEO John Lyttle resigned from his position.