Fast fashion retailer Boohoo has announced the appointment of Dan Finley, formerly the head of Debenhams, as its new chief executive. This strategic move comes as Boohoo aims to distance itself from Mike Ashley, the owner of Frasers Group, who has been vying for a leadership position within the company.

Finley takes the helm immediately, following Boohoo’s acquisition of Debenhams in 2021 for £55 million. He brings considerable experience to the role, having led Debenhams for nearly three years.

Frasers Group, which holds a 27 percent stake in Boohoo, has been vocal about its dissatisfaction with the company’s leadership. Ashley has been seeking a board seat and has expressed interest in becoming chief executive, citing concerns about Boohoo’s management and overall performance.

In a recent correspondence, Ashley emphasized the critical need for effective leadership at Boohoo, referring to instances of “serious mismanagement.” He stated his readiness to invest time and resources into revitalizing Boohoo to benefit all shareholders.

Ashley’s frustrations were further fueled by the resignation of John Lyttle earlier this month and what he termed a “disastrous” refinancing initiative.

Amid these leadership changes, Boohoo has initiated a business review that may lead to a restructuring of its brand portfolio, which includes other popular names like PrettyLittleThing and Oasis.

In a rebuttal to Ashley’s attempts to influence the board, Boohoo’s deputy chairman Alistair McGeorge stated that the board unanimously supports Finley’s appointment and plans to formally communicate with shareholders regarding Frasers Group’s proposals shortly.

The future of Frasers Group’s push for a board position for Ashley remains uncertain as no immediate plans have been disclosed.

Market analyst Clive Black remarked on the dynamic between Boohoo and Frasers, suggesting that Ashley’s ambitions for the chief executive role might still come into play despite Finley’s new position.

Describing Finley as one of the leading figures in modern digital retail, McGeorge expressed confidence in Finley’s ability to replicate the successful business model developed at Debenhams across Boohoo’s various brands.

Prior to leading Debenhams, Finley had a decade-long tenure as the multi-channel director at JD Sports. He acknowledged the strength of Boohoo’s brand portfolio and indicated intentions to implement similar strategies that proved effective at Debenhams.

Following the announcement of Finley’s appointment, Boohoo’s shares increased by 3.82 percent to 30.7p, while Frasers’ shares rose by 0.53 percent to 765p.