British online fashion retailer Boohoo has appointed Dan Finley as its new chief executive officer with immediate effect, rejecting demands from its largest shareholder Frasers Group to install Mike Ashley in the role.

The appointment comes after Frasers Group, which owns 27 per cent of Boohoo's shares, had called for an extraordinary general meeting last week to appoint Ashley as chief executive officer, criticising the company's "abysmal" trading performance and recent £222 million debt refinancing.

Finley, who currently heads Boohoo's digital department store Debenhams, will replace John Lyttle. Under Finley's leadership, Debenhams has achieved a gross merchandise value annual run rate of approximately £800 million through what Boohoo described as a capital-light and cash generative model.

Alistair McGeorge, Boohoo's deputy chairman, said the board was unanimous in its decision to appoint Finley. "Dan is 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," he said.

Finley expressed optimism about his new role, stating: "I am excited at the opportunities I see ahead as I become chief executive officer of Boohoo Group. We have brilliant brands and people, underpinned by best-in-class infrastructure."

Boohoo had previously indicated it was willing to discuss board representation with Frasers but noted concerns about "appropriate governance" given Frasers' 23.6 per cent stake in rival retailer Asos.

The company's shares rose 3 per cent following the announcement, providing some relief after losing 28 per cent of their value in the first ten months of this year. The stock has declined more than 90 per cent since its peak in mid-2020 when the retailer benefited from increased online shopping during the pandemic.

Lyttle, who led the company for five years, will remain available to support a smooth transition, the company said.

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