(Bloomberg) -- Billionaire Mike Ashley renewed his pitch for a board seat at Boohoo Group Plc, vowing to turn around the struggling fashion retailer that he said was underperforming with “no clear strategy to halt the decline.”
Recent management changes at London-listed Boohoo are “the epitome of chaos, a desperate attempt to mask dysfunction at the top,” Ashley said in an open letter to the retailer’s shareholders on Sunday. “But Boohoo is not beyond saving. As a board member, I would bring the fresh ideas, constructive support, and the much-needed accountability Boohoo desperately needs,” he added.
Ashley, who owns more than a quarter of Boohoo’s shares through his company Frasers Group Plc, has been pushing for more control over the struggling online fashion retailer, after a failed bid to become its chief executive officer. Last month, Boohoo named Debenhams boss Dan Finley to the role, and appointed Tim Morris as chairman. Morris replaced the company’s co-founder Mahmud Kamani, whose role shifted to executive vice chair.
Boohoo, which owns the Debenhams, Karen Millen and PrettyLittleThing brands, announced last month that it’s undertaking a strategic review — a move that could potentially lead to the breakup of the company.
Ashley met with Boohoo’s management last week to discuss “working collaboratively” on a turnaround, critical to which will be “avoiding a fire sale of assets at knockdown prices,” according to the open letter. He said that Debenhams “should not be sold” and that he would insist on a rigorous process involving independent advisers and shareholder consultation before deciding on any other non-core asset sales.
Ashley has a history of building up stakes in underperforming retailers and aggressively pursuing the power to implement changes. In the past, he has clashed with Kamani, who owns over 11% of the retailer, including during Frasers’ failed attempt to rescue the department store Debenhams, whose website and brand were ultimately bought by Boohoo.
Read: Frasers Calls for Removal of Boohoo Director Mahmud Kamani
Ashley said he wanted to explore the options for “more cost-effective and sustainable financing” for Boohoo and has assurances from Frasers — founded and controlled by him — that they are “committed to supporting” these efforts.
Read: Boohoo Raises £39 Million, Urges Investors to Spurn Mike Ashley
He reassured shareholders that if he was a director of Boohoo he would not share any confidential information about the company with Frasers or join Frasers’ board.
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