LONDON – Boohoo Group has a new chief executive, and it’s not Mike Ashley.
On Friday, the board named Dan Finley as CEO just days after Ashley, the owner of Frasers Group and a large minority shareholder in Boohoo, tried to force himself into the top job.
As reported, Frasers Group had requested an extraordinary general meeting to nominate Ashley as a director and CEO, replacing John Lyttle, who announced last month he was stepping down after five years.
Frasers has a 27 percent stake in Boohoo, and Ashley believed he was the right man to run the fast-fashion company in difficult times.
Finley, 41, is currently CEO of Debenhams, which Boohoo acquired out of administration and transformed into a digital department store. He’ll take up the Boohoo Group role with immediate effect.
Mike Ashley
Ian Tuttle/BPI/REX/Shutterstock
Alistair McGeorge, Boohoo Group deputy chairman, said the board was “unanimous” in its decision to appoint Finley, whom he described as “one of the outstanding leaders in a new generation of digital retailers.”
McGeorge added that Finley 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.”
He said that before Debenhams, Finley “had a track record of phenomenal success in online retail during his 10 years at JD Sports. The board looks forward to working with him, as we continue the review of options to unlock and maximize shareholder value.”
Finely said he’s looking forward to exploring opportunities to extend the successful Debenhams business model across Boohoo Group. “I will dedicate myself totally to working with my colleagues to unlock significant value for all shareholders,” he said.
An ad for Karen Millen, one of the brands Boohoo Group that’s under review.
Before joining Debenhams, Finley spent a decade as group multi-channel director at JD Sports, and was there when JD Sports entered the FTSE 100.
Finley joined Debenhams as CEO in January 2022, following the acquisition of the department store out of administration for 55 million pounds. Boohoo had beat Frasers to buy Debenhams, which Frasers was eager to acquire.
At the time, Frasers was already a substantial minority shareholder in the ailing department store.
Boohoo said that under Finley’s leadership, Debenhams has achieved a GMV annual run rate of around 800 million pounds, and a community of around 10,000 brands across fashion, home and beauty.
Boohoo added that the board “will be writing to shareholders in relation to [Frasers’] proposals in due course. Until then, shareholders are strongly advised to take no action in respect of the proposals.”
Ashley is known in the U.K. as the Grim Reaper of the high street, buying up stakes in mass market, premium and luxury companies and then pouncing when he senses trouble, or when sales begin to slow.
His demands to join the Boohoo board and become CEO came in the wake of Boohoo’s announcement of a major review into the business in a tough environment for online fashion.
As reported, Boohoo is looking to shore up its plummeting share price and “maximize” shareholder value by placing its three main divisions — Debenhams, Karen Millen and Young Fashion Brands, which comprises Boohoo and other youth-focused brands — under review.
The company said the performance of its “youth brands” has remained impacted by the external environment, although the group continues to see considerable GMV growth for Debenhams’ external marketplace, with an additional 5,000 brands signed within the period.
In an effort to drive business, Boohoo said it has already executed on a series of “decisive and robust strategic initiatives to drive operational efficiencies and optimize the cost base over the last 18 months.”
