Frasers’ parting shot aimed at ‘£2m consultancy fees’ for son of Boohoo boss

Fresh from its latest defeat at the hands of Boohoo shareholders, Derbyshire-based retail giant, Frasers Group, has taken a parting shot at the Kumani family, co-founders of the Manchester-based fast fashion online retailer.

Frasers, established by Sports Direct founder Mike Ashley, has failed in two bids to oust Mahmud Kamani, executive vice chair of Boohoo, and install Ashley to the board, through General Meeting ballots, the latest being earlier this week.

In an open letter today Frasers, Boohoo’s biggest shareholder with a 28.1% stake, said it notes the result of the January 21 meeting and ballot and “respects the views of the independent shareholders”.

But it said it would like to make Boohoo shareholders aware of “certain troubling matters in relation to the remuneration that Frasers understands Mr Umar Kamani, the son of Boohoo’s founder and executive vice chair, Mahmud Kamani, is receiving for providing ‘consultancy services’ to a subsidiary of Boohoo”.

Frasers says Umar Kumani is being paid £2m a year as a consultant to Boohoo subsidiary, PrettyLittleThing (PLT) through a Dubai bank account.

The open letter says: “Despite repeated requests from Frasers that the details of this consultancy arrangement be disclosed and notwithstanding the significance of the alleged amounts and apparent conflict of interest concerns, including in relation to Umar Kamani’s position as a related party to Boohoo and PLT, no details have been provided to Boohoo shareholders.

“Frasers is aware that other shareholders of Boohoo have previously asked Boohoo questions relating to Umar Kamani’s position at PLT and no responses from Boohoo have been forthcoming.

“Frasers therefore asks Boohoo again to urgently provide full details of Umar Kamani’s consultancy arrangement, including the remuneration that Umar Kamani is receiving, for the benefit of all Boohoo shareholders.”