Boohoo Group Updates Supplier Payment Terms Following Shareholder Vote
In a move aimed at ensuring the company operates "as effectively and efficiently as possible," Boohoo Group has updated its supplier payment terms. The update comes in response to the company’s recent general meeting, where shareholders overwhelmingly voted against resolutions tabled by Frasers Group to appoint their own Mike Ashley and Mike Lennon as directors.
Background on Shareholder Vote
In December, Boohoo Group held a general meeting, during which its shareholders rejected proposals from Frasers Group to add two new directors to the board. The move was seen as an effort by Frasers Group to gain greater influence over the company’s operations.
Reacting to the vote, Tim Morris, Independent Non-Executive Chair of Boohoo Group, expressed gratitude to shareholders for their support of the existing board. "We remain focused on delivering our business review with the objective of unlocking and maximising value for all shareholders," he stated.
Dan Finchley, CEO of Boohoo, also weighed in on the vote, highlighting the company’s strengths and potential opportunities. "Our group is a dynamic business, with great brands and extremely talented people, underpinned by best-in-class infrastructure," he said. "Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders."
Finchley emphasized his enthusiasm for the company’s prospects, stating that he believes Boohoo is "materially undervalued." He also acknowledged that the company’s most significant challenges lie ahead but expressed confidence in its ability to drive value for all stakeholders.
Frasers Group Responds
In a move signaling their ongoing interest in Boohoo Group, UK retail conglomerate and Boohoo shareholder Frasers Group has confirmed that it will propose an alternative board candidate in due course. This development underscores the ongoing dynamics between these two major players in the retail sector.
Boohoo’s Office Sale and Cash Infusion
Separately, Boohoo Group announced last month (December) the completion of its office sale to Global Holdings UK, a standalone real estate fund. The Soho-based London office situated on Great Pulteney Street was sold for a total cash transaction of £49.5m ($61.36m).
A significant portion of the capital received from this sale will be allocated towards settling the outstanding balance of a term loan scheduled for maturity in August 2025. Following repayment, the group will maintain access to a £125m revolving credit facility, which it deems adequate for its prospective requirements.
Supplier Payment Terms Update
In light of these developments and its commitment to operational efficiency, Boohoo Group has updated its supplier payment terms. A spokesperson for the company explained that this move is part of an ongoing process to ensure the company operates effectively and efficiently.
The spokesperson also highlighted that Boohoo’s supplier payment terms are "highly competitive," underscoring the company’s focus on maintaining strong relationships with its suppliers.
Conclusion
Boohoo Group’s decision to update its supplier payment terms underscores the company’s commitment to operational excellence. As it continues to navigate the retail landscape, the company remains focused on delivering value for all stakeholders. With a dynamic business model and best-in-class infrastructure, Boohoo is well-positioned to capitalize on opportunities ahead.
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