Even in boohoo world it鈥檚 been a tumultuous 24 hours.
It鈥檚 10 years since the company listed on the London Stock Exchange which valued the Manchester-headquartered retailer at 拢560m.
I remember interviewing the co-founders Mahmud Kamani and Carol Kane in 2014 for an article headlined: 鈥楾he rise and rise of boohoo.鈥�
Much like boohoo, the headline has not aged well.
Fast forward a decade and boohoo is on the ropes. Yesterday Ashley delivered what some analysts think could be the knockout blow with an to the board.
It鈥檚 also prompted speculation about Ashley鈥檚 motivation and what boohoo鈥檚 response will be.
But first a recap.
Last week the company made a double announcement.
Firstly, they confirmed CEO John Lyttle would be leaving in the 鈥榗oming months鈥�
Secondly, they鈥檇 revealed they鈥檇 signed a new 拢222m debt financing agreement with a consortium of its existing relationship banking group to drive the next phase of development.
However, if they hoped the news would appease their critics 鈥� especially their largest shareholder Frasers Group 鈥� they got their answer yesterday in a bombshell open letter signed by company secretary Robert Palmer.
It spoke of a 鈥榣eadership crisis鈥� at boohoo, an 鈥榓bysmal trading performance鈥� and accused the company of 鈥榮tonewalling鈥� them.
It went on: 鈥淭he board has lost its ability to manage boohoo鈥檚 business and investments.
鈥淎聽further聽example聽of聽the聽board鈥檚聽mis-management of boohoo relates to the debt refinancing that was announced.
鈥淔rasers鈥櫬爒iew聽is聽that聽the聽terms聽of聽the聽debt聽refinancing are wholly unsatisfactory. Fraser considers the refinancing to be a step backward for the company and an appalling outcome for shareholders.
鈥淭he new 拢222m facility is severely short-dated, seemingly more expensive than the previous financing arrangement and almost unquestionably leaves the company in a position of needing to undertake drastic corporate actions (whether it be disposals, deeper operational cuts, closures etc.) in order to repay the term loan due in 10 months.
鈥淗ad boohoo engaged constructively with Frasers on the refinancing, alternative solutions could have been fully explored which may have resulted in a more favourable outcome for all stakeholders.鈥�
The letter also pointed out that boohoo鈥檚 share price had dropped 29 per cent this year and 17 per cent in the last three months.
However, the biggest talking point centred on John Lyttle鈥檚 departure as CEO and his possible replacement.
鈥淭he resignation of Mr Lyttle creates a leadership void and is an impediment聽on聽boohoo鈥檚聽return聽to聽growth,鈥� claimed Frasers.
鈥淔inding聽a聽replacement聽who can not only reinvigorate the company, but also deliver best-in-class operational oversight, will be very difficult to achieve in the near term.
鈥淎ppointing Mr Ashley as a director and CEO of boohoo is the best solution to boohoo鈥檚 leadership crisis.鈥�
The letter has sparked a flurry of speculation about what Ashley鈥檚 end game is.
The first thing to say is that as boohoo鈥檚 largest shareholder with 27 per cent of the issued share capital, Frasers Group has every right to protect its investment.
However, it鈥檚 also worth making an important point. Boohoo group is about much more than just boohoo, consisting of five core brands 鈥� and they鈥檙e not all in the mire.
PrettyLittleThing, boohoo and boohooMAN are categorised as 鈥榶oung fashion brands鈥� and nobody is denying they鈥檙e finding it tough. Fast fashion has changed and Shein has stolen a march on them.
However, their portfolio also includes Debenhams and Karen Millen and they鈥檙e performing a lot better.
Boohoo bought Karen Millen for 拢18.2m in 2019 and the Debenhams brand (but not the stores) in 2021 for 拢55m.
Debenhams is growing fast and is profitable while Karen Millen has been transformed into a global brand.
Although Frasers Group might not be a household name, Sports Direct International is. It rebranded as Frasers Group in 2019 after acquiring the iconic House of Fraser brand in 2018.
Frasers Group has been busy snapping up shopping centres across the UK as it grows its property portfolio.
Ashley has a track record in bricks and mortar retail so the part of boohoo group that might really appeal to him could be Debenhams (and Karen Millen) rather than eCommerce businesses like boohoo and PrettyLittleThing.
Boohoo鈥檚 announcement last week that it plans to 鈥榰nlock shareholder value鈥� led to speculation that it鈥檚 planning to break-up the business.
Could boohoo be about to offload Debenhams and Karen Millen as it attempts to revitalise younger target market?
Frasers Group made its position clear on this point in its open letter by putting its response in bold letters. 鈥淔rasers would like to make absolutely clear that no disposals should be made without first consulting Frasers and all other major shareholders,鈥� it said.
There鈥檚 no doubt that the carefully worded letter has been a shot across the bows of boohoo.
Yesterday the Guardian said that PrettyLittleThing鈥檚 founder Umar Kamani, who returned to run the retailer in September, was being tipped to take over as boohoo鈥檚 chief executive after Lyttle鈥檚 departure 鈥� although such a move seems unlikely.
What鈥檚 clear is that yesterday鈥檚 open letter felt big and that Umar鈥檚 father Mahmud Kamani is in a fight.
This morning boohoo issued a statement claiming Frasers Group handed it a 48-hour deadline to confirm Ashley as CEO last Friday evening.
Boohoo鈥檚 share price currently stands at 28.5p 鈥� down from 拢4.13 in June 2020 – and I was reminded of a quote Mahmud gave me in our 2014 interview.
鈥淚鈥檓 a very, very simple man,鈥� he said. 鈥淚 only know one job. Indians used to laugh at me. Ten years ago all my friends would say Indians were either on the markets or doctors. I said 鈥榳ell you know I鈥檓 not a f***ing doctor鈥�.鈥�