The ongoing rivalry between two of the UK’s biggest retail giants escalated on Friday as Frasers Group voted to block Boohoo’s attempt to change its holding company name to Debenhams. The move, led by Mike Ashley’s group, which holds a 27% stake in Boohoo, prevented the resolution from passing at a general meeting.
The proposal required at least 66% shareholder approval but was defeated after 38% of votes were cast against it. Despite the setback, Boohoo remains determined to move forward with its rebranding strategy, announcing that its ticker symbol on the London Stock Exchange will change to DEBS from Monday. However, its listed name will remain Boohoo Group Plc.
Retail Giants Clash Over Boohoo’s Future
Frasers Group’s Chief Financial Officer, Chris Wootton, defended the company’s decision to oppose the name change, stating: “When Boohoo stops destroying shareholder value, Frasers Group as its biggest shareholder will be happy to support its proposals.”
Boohoo responded sharply, accusing Frasers of acting in its “own self-interest”. The company pointed out that it was “no surprise” that Frasers, a direct competitor, voted against the resolution.
Despite the setback, Boohoo CEO Dan Finley remained optimistic: “Debenhams is back, and we continue to move forward as Debenhams Group. The successful turnaround of Debenhams is the blueprint for the turnaround of the wider group. Our best days are ahead of us and I am excited for our future.”
Boohoo’s Struggles and Rebranding Strategy
Boohoo’s rebranding push comes as the company faces significant challenges, including declining sales, supply chain disruptions, and governance concerns. The fast-fashion retailer believes that leveraging the legacy and consumer trust in the Debenhams name could help strengthen its broader business.
The clash with Frasers Group follows a series of confrontations between the two companies. Last year, Frasers attempted to install Mike Ashley and restructuring expert Mike Lennon on Boohoo’s board, an effort that was ultimately rejected by shareholders. The motion also sought to remove Boohoo founder Mahmud Kamani as a director, but it failed to gain the necessary support.
Frasers Seeks ‘Constructive Engagement’ Amid Tensions
Despite the ongoing disputes, Frasers Group insists it is looking for “constructive engagement” with Boohoo and continues to push for Lennon to be granted a seat on the board. The group downplayed suggestions of fierce competition, stating: “We do not see them as a major competitor to any part of our business.”
However, given the deepening rivalry between the two fashion powerhouses, Frasers’ latest move signals that tensions are far from over. The battle for control over Boohoo’s direction—and the fate of the Debenhams rebrand—remains a key point of contention in the evolving landscape of UK retail.
