British online fashion retailer Boohoo on Friday appointed Dan Finley as its new chief executive, effective immediately, in a blow to top investor Frasers which had attempted to appoint its controlling shareholder Mike Ashley to the role.

Boohoo’s shares rose 3 per cent on the news of the appointment of Finley, who is currently head of Boohoo’s digital department store unit Debenhams and who will replace Irish chief executive John Lyttle.

Frasers last week requisitioned a general meeting at Boohoo to appoint British entrepreneur Mike Ashley as chief executive. A week prior, Boohoo had said Mr Lyttle would step down and also announced a strategic review that could see it broken up.

Controlled by Mr Ashley, the British sportswear and apparel retailer is Boohoo’s biggest shareholder with a stake of about 27 per cent.

Boohoo’s board was unanimous in its decision to appoint Mr Finley as chief executive, the company’s deputy chairman Alistair McGeorge said in a statement.

Frasers did not immediately respond to a request for a comment.

Under Mr Finley’s leadership, Debenhams has a gross merchandise value (GMV) annual run rate of about £800 million (€950 million) due to a capital-light and cash generative model, Boohoo said.

Analysts at Jefferies said the GMV was well in advance of the brokerage’s estimate earlier this year of about £400 million.

Boohoo, in response to Frasers last week, had said it was willing to discuss board representation but that there needed to be “appropriate governance” to protect its commercial position.

Boohoo had noted that Frasers also owns a 23.6 per cent stake in ASOS, which operates in similar markets to both Boohoo and Frasers.

Frasers also owns stakes in the likes of British luxury brand Mulberry, where a takeover attempt by Frasers failed last month, and British electronics retailer AO world.

It also invested £150 million in Debenhams, which went out of business in 2021 and was bought by Boohoo out of administration. – Reuters

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