Boohoo has been at the centre of its very own soap opera in recent years and today another episode of that story is set to play out in the boardroom at what could become a contentious general meeting that sets the future course of the company.
The battle for control over fast fashion retailer Boohoo has intensified in recent months as Mike Ashley, founder of Frasers Group, and Boohoo’s co-founder Mahmud Kamani vie to steer the struggling company around. The much-anticipated general meeting, which is being held today (January 21), could be be pivotal in deciding whether Kamani retains his position or if Ashley will gain influence over the company’s future direction.
READ MORE: Mike Ashley vs Boohoo: what bitter boardroom showdown could mean for struggling fast fashion giant
In case you missed the saga over the past few months, Frasers is Boohoo’s biggest shareholder and has called the meeting in an attempt to unseat Kamani from the board as director.
Just before Christmas, shareholders voted against a proposal for Ashley to be appointed as a director. Boohoo then published a letter to shareholders at the beginning of January, reiterating its recommendations that shareholders should vote against the proposal to remove Kamani from the board as a director.
The letter claims Frasers’ demands form part of an on-going campaign 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, with Frasers acting “solely in its own commercial self-interest”.
Ahead of the upcoming meeting, shareholders will need to vote on whether Kamani should remain as a director having already stepped down as chair. Aside from the on-going spat, is Mike Ashley or Mahmud Kamani best placed to turn the brand’s widening losses into profits?
Who is Mike Ashley? A glimpse into the man behind Frasers Group
Mike Ashley is arguably one of the most influential figures in British retail, having built an empire that spans sportswear, luxury brands, and high street retail. His entrepreneurial journey started back in 1982 at the age of 18, when he opened his first sports shop in Maidenhead.
Armed with a loan from family, he expanded his operations and built up a network of stores under the Sports Direct name, which became the foundation of Ashley’s success.
In 2007, Ashley floated the company on the London Stock Exchange and that same year, he scored success after buying Newcastle United. In 2019, Sports Direct’s parent company rebranded to Frasers Group, which made a number of key acquisitions under Ashley’s leadership including House of Fraser, Jack Wills, Evans Cycles.
Then In 2021, he sold Newcastle United to a consortium backed by Saudi Arabia’s sovereign wealth fund and later handed the reins of CEO at Frasers Group over to son-in-law Michael Murray in 2022, stepping down from its board of directors.
Frasers announced it was making a “strategic investment” in Boohoo in 2023, and has been incrementally building its stake over the past year.
In October last year, the spat between Frasers and Boohoo unravelled. Frasers released the first of a series of open letters to the Manchester online retailer, accusing it of having an “abysmal trading performance and share price collapse”. The open letter also said that its founder, Mike Ashley, was the only person who could turn it round.
In a bold move, Ashley sought to join Boohoo’s board and even proposed himself as CEO, aiming to implement a turnaround strategy to address declining revenues.
Mahmud Kamani: the retail titan behind Boohoo
Mahmud Kamani, the co-founder of Boohoo, has become a notable figure in the fast fashion industry. Despite recent challenges facing the company, Kamani remains central to its strategic direction.
Following a stint in a family business, Kamani built up a talent for building relationships with suppliers and buyers and co-founded Boohoo alongside Carol Kane in 2006, which capitalised on the growing ecommerce market to cater to an increasing demand for affordable, fast and trendy fashion.
By 2014, the company had gone public, raising £300 million in an IPO. Under Kamani’s guidance, Boohoo embarked on an ambitious expansion strategy through acquiring a number of well known brands including Nasty Gal in 2017, Karen Millen and Coast in 2019, Debenhams in 2021 and PrettyLittleThing, which was co-founded by his sons Umar and Adam.
In November 2024, Boohoo appointed Tim Morris as independent non-executive chair, transitioning Kamani to the role of executive vice-chair. Earlier this month, in a letter to shareholders, Boohoo said Kamani is “an integral part of the leadership team” who built the company from the ground up, transforming it to a global leader in online fashion.
The letter added that Kamani’s “entrepreneurial spirit, industry expertise and unwavering commitment to Boohoo has been and remains, a key asset for the business”.
The path forward for Boohoo
As the power struggle continues, the upcoming shareholder meeting will be pivotal in deciding whether Kamani retains his position or if Ashley gains influence over the company’s direction.
But with players like Temu, Shein and sustainable fashion platforms Vinted and Depop increasing their dominance, Boohoo is missing a “clear strategy for business turnaround” says retail expert Catherine Shuttleworth, who is also CEO at Leeds-based agency Savvy.
“Fundamentally the business needs rethinking to be fit for the second half of this decade, it remains to be seen what the vision is for the business.”
For Kate Hardcastle MBE, a retail expert and the ‘Customer Whisperer’, the future of Boohoo lies in “forward-thinking leadership that champions the consumer and embraces change”.
“This isn’t about taking the brand back to a bygone era of retail, where success was measured purely by volume and discounts. It’s about evolving the business model to meet the needs of today’s shoppers.
“It needs a leader who will prioritise listening to the consumer. Someone who will focus on creating better-quality products, reducing waste, and addressing the “digital distress” caused by overwhelming product ranges. Boohoo doesn’t need more choice; it needs smarter, curated offerings that resonate with its audience. It’s not just about having a voice at the table for consumers – it’s about giving them the loudest voice in the room – so the best outcome for Boohoo is a leader who will put ‘the aces in the places around the table’.”
Boohoo has a big opportunity to turn things around in future, if it embraces change and shifts in consumer habits.
“Boohoo was once synonymous with fun, affordability, and accessibility. But it has lost its way, caught in a cycle of chasing profits at the expense of reputation and relevance. What could Boohoo mean again? It could be the brand that redefines fast fashion – proving that affordable, sustainable, and stylish clothing isn’t an impossible dream but a viable business model.
“This is a chance to turn Boohoo into more than just a retailer – it could be a leader in retail evolution. But that will only happen if the company embraces change, respects its customers, and innovates with purpose.”
And what about the opportunity ahead?
“Boohoo’s customers are ready for something better. The question is whether Boohoo is ready to meet them where they are. Leadership, strategy, and action must align around the consumer. Because in retail, as in life, you evolve or you end up crying in the corner…”