Boohoo has appointed the chief executive of Debenhams as its new boss, in an apparent snub to retail tycoon Mike Ashley.
The online retailer said Dan Finley would take over with immediate effect after spending nearly three years at Debenhams, which Boohoo owns.
Mr Ashley’s Frasers Group had been pushing for Boohoo to install its founder in recent weeks, after John Lyttle announced he was stepping down from the online clothes seller in October.
Dan 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
On October 24, Frasers – which is Boohoo’s largest shareholder with a 27% stake – called for a meeting of Boohoo investors to back its plans to appoint Mr Ashley.
In an open letter, Frasers claimed it was “in the best interests of Boohoo, its shareholders and its stakeholders” to appoint Mr Ashley “without delay”.
Frasers said Boohoo had been the victim of “long-term mismanagement” and “value destruction”.
But on Friday, Boohoo deputy chairman Alistair McGeorge said the board was “unanimous” in its decision to appoint Mr Finley.
Mr McGeorge called the new chief executive “one of the outstanding leaders in a new generation of digital retailers”.
“Dan 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.”
It follows Mr Lyttle’s announcement in mid-October that he would step down after five years as boss.
At the same time, Boohoo revealed plans for a strategic review, sparking speculation regarding a potential break-up of the business.
Boohoo also reported that revenues had dropped by 15% to £620 million for the six months to August 31.
Mr Finley said Boohoo has “brilliant brands and people”, and that he would look to “extend” the business model pursued by Debenhams in recent years across the group.
Boohoo bought Debenhams out of administration in a £55 million deal in 2021.
