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Mike Ashley’s Frasers Group has launched fresh accusations against fast-fashion retailer Boohoo, claiming undisclosed payments to Umar Kamani, son of founder Mahmud Kamani. The allegations emerged following Frasers Group’s unsuccessful attempt to remove Mahmud Kamani from the board.
The Sports Direct owner, holding a 28 per cent stake in Boohoo, has raised serious concerns about alleged annual payments of £2 million to Umar Kamani, directed to a Dubai bank account. These revelations surfaced after 63 per cent of Boohoo shareholders rejected Frasers’ motion to oust Mahmud Kamani from his leadership position.
Umar Kamani, who established PrettyLittleThing (PLT) in 2012 before its acquisition by Boohoo in 2020, returned to the brand last year in a consultancy role. The move followed his departure in 2023, citing concerns about the brand losing its distinctive appeal.
Frasers Group expressed deep concerns regarding Boohoo’s governance practices, demanding transparency about Umar Kamani’s consultancy arrangement and remuneration. The group emphasised the significance of these alleged payments and potential conflicts of interest, given Kamani’s position as a related party to both Boohoo and PLT.
Boohoo has declined to comment officially but is understood to have privately disputed the £2 million figure in communications with Frasers. The controversy emerges amid ongoing investigations by three police forces into claims of stalking of Boohoo leaders and alleged corporate espionage.
The market responded to these developments with Boohoo shares declining 4.9 per cent to 28¼p, while Frasers Group saw a modest increase of 0.7 per cent to 599½p.
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