Attempts by Boohoo Group, the online fashion retailer, to change its London-listed holding company’s name to Debenhams were on a knife-edge on Thursday evening after the retail billionaire Mike Ashley moved to block the proposal.
Sky News has learnt that Frasers Group, the company majority-owned by Mr Ashley, has voted its 27% stake against a resolution that would allow the name change to take place.
Jersey-incorporated Boohoo needs two-thirds of voting shareholders to approve the resolution at a general meeting scheduled to take place on Friday morning.
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City sources said on Thursday evening that the vote looked “incredibly tight”.
If it fails to secure the required majority, Boohoo would be forced to retain its existing plc name – which one source described as “a technicality”.
Boohoo already owns and operates the Debenhams brand, which collapsed into administration during the COVID pandemic and which the company says has been transformed into a successful online marketplace model.
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Frasers and Boohoo have been at loggerheads for months, with Mr Ashley trying, and failing, to get himself appointed to his rival’s board.
He has accused Boohoo of “gross mismanagement”, pointing to the collapse in its share price over the last five years.
In return, Boohoo has argued that Mr Ashley is seeking to gain control of the company without making a conventional takeover offer, and that appointing him as a director would be untenable.
Boohoo has agreed to appoint an alternative, independent candidate as a representative of its biggest shareholder instead.
Frasers and Boohoo declined to comment.
