- Finley was previously JD Sports’ group multi-channel director for a decade
- Boohoo shares have plunged by more than 90% since peaking at over 400p
Boohoo has named Debenhams boss Dan Finley as its new chief executive, rejecting calls from top shareholder Frasers for the group to appoint retail tycoon Mike Ashley.
Finley is an insider, with Debenhams’ name and website operations having been acquired by Boohoo when the group went into administration in 2021.
Boohoo said Finley’s selection was unanimously backed by the board and acknowledged the ‘phenomenal success that Debenhams has enjoyed’ under his leadership.
Major snub: Boohoo has named Dan Finley (L) as its new chief executive, turning down requests to appoint retail tycoon Mike Ashley (R)
Frasers Group last week called for Boohoo investors to be granted a vote on Ashley replacing John Lyttle as CEO, calling it the ‘best solution’ to the firm’s ‘leadership crisis’.
In an open letter, the Sports Direct owner accused Boohoo’s board of ‘stonewalling’ and failing to ‘meaningfully engage’ on its ideas for management representation.
Frasers said management had presided over ‘large-scale value destruction’ and lost the ability to successfully manage the business and its investments.
Boohoo denied ignoring and delaying its response to the proposals and said Frasers ‘formally ruled out’ Mr Ashley for the CEO role on 9 October.
Frasers declined to comment on Finley’s appointment.
Alistair McGeorge, deputy chairman of Boohoo Group, said Finley had ‘successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth marketplace’.
PrettyLittleThing boss Umar Kamani, who had also been flagged as a potential candidate for the Boohoo job, said in a statement on Instagram: ‘Great appointment and will definitely implement lots of positive changes for the benefit of all shareholders. The start of a new and exciting era for the Boohoo group.’
Lyttle announced a fortnight ago that he was stepping down after five tumultuous years at the fashion brand, whose share price has plunged by more than 90 per cent since peaking at over 400 pence in 2020.
Boohoo, which owns Karen Millen and PrettyLittleThing, enjoyed breakneck growth during the early days of the Covid-19 pandemic due to harsh lockdown restrictions on physical stores driving Britons to buy their clothes online.
Its sales subsequently slowed and shrank as those curbs loosened, cost-of-living pressures arose, and competition from rivals like Shein abounded.
For the six months ending August, the company’s turnover declined by 15 per cent year-on-year to £620million.
Finley told investors: ‘I am excited at the opportunities I see ahead as I become CEO of Boohoo Group. We have brilliant brands and people, underpinned by best-in-class infrastructure.’
Boohoo shares were 0.95 per cent higher at 29.9p on Friday morning, taking their losses since the year started to around 19 per cent.
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