Boohoo sidelines Mike Ashley by naming insider as new boss

Boohoo has named the boss of Debenhams as its new chief executive, in a swift move to sideline the Frasers tycoon Mike Ashley, who had been lobbying for the post.
The struggling fast-fashion giant said Dan Finley would take over with immediate effect after spending nearly three years at Debenhams, which Boohoo bought out of administration in a £55 million deal in 2021.
As Boohoo’s largest shareholder with a 27 per cent stake, Frasers had been pushing for a board seat for Ashley, with sights on a potential chief executive role, amid frustrations with the fast-fashion retailer’s leadership.
Frasers accused Boohoo bosses of “stonewalling” and mismanagement, which it believes has cost it its competitive edge.
In a letter to The Sunday Times Ashley underlined the urgency with which someone should fill the vacant chief executive position at Boohoo after the company suffered “serious mismanagement”. He wrote: “I’m all in. I’m ready to dedicate my time and effort, including basing myself in Manchester as much as I deem required, to turn Boohoo around and deliver value for all shareholders.”
He added that he believed that the resignation of John Lyttle as chief executive earlier in October, coupled with the revelation of a “disastrous” refinancing, was his last straw.
Boohoo announced a review of the business that is likely to result in a break-up of its brand portfolio. Other labels in the group include PrettyLittleThing, Karen Millen, Oasis and Warehouse.
Last week Boohoo urged shareholders to rebuff Ashley’s boardroom coup and hit back at his “inaccurate and unfair” critique. Alistair McGeorge, its deputy chairman, said the board was unanimous in its decision to appoint Finley.
Boohoo said the board would be writing to shareholders in relation to the Frasers proposals in due course: “Until then shareholders are strongly advised to take no action in respect of the proposals.”
It was unclear on Friday morning whether Frasers still planned to push for a board seat for Ashley, or whether it would still attempt to install him as chief executive. Frasers was contacted for comment.
Clive Black, of the broker Shore Capital, said: “Ashley has sought to be CEO of Boohoo and it is far from certain that he will not succeed, even with this appointment of Mr Finley.
“The Boohoo Board may be unanimous in its approval of Mr Finley but it is others who will ultimately make the choice. One senses that exchanges between the Boohoo [camp] and elements of the Frasers camps may have been most colourful to date, but we await to see if there will be more knockout blows to come, with interest. We did say that this may be a blockbuster and both parties are not disappointed. More popcorn please.”
McGeorge called the new chief executive “one of the outstanding leaders in a new generation of digital retailers” and added: “Dan and his team have successfully transformed Debenhams from a failed department store, creating a new business model that is a capital-light, stock-light, high-growth marketplace.”
Before joining Debenhams as chief executive in 2022 Finley spent a decade as group multi-channel director at JD Sports. He said Boohoo had “brilliant brands and people” and that he would look to extend the business model pursued by Debenhams in recent years across the group.
Shares in Boohoo rose 1.13p, or 3.82 per cent, to 30.7p in early trading. Frasers’ stock was up 4p, or 0.53 per cent, to 765p.