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Christmas cheer is in short supply as shareholders at one of the UK’s biggest fashion retailers, Boohoo, prepare to vote on a bitter boardroom battle that could decide the company’s future.

At the centre of the heated dispute is business mogul and onetime Newcastle United owner Mike Ashley.

His fight to get on Boohoo’s board will come to a head on Friday 20 December with a shareholder vote.

Ashley’s Frasers Group holds a 28 per cent stake in the company, making it the largest shareholder. As a result, he is pushing for significant leadership changes including his instalment as chief executive and the appointment of restructuring expert Mike Lennon of Kroll to the board.

John Lyttle, Boohoo’s former chief executive, resigned in October after five years, reportedly citing concerns over surveillance and harassment.

Lyttle, along with current chief executive Dan Finley and co-founder Mahmud Kamani, alleged they had been stalked and followed across London, Kent, and Manchester in the months prior to the executive’s departure, according to a report in The Times.

Kamani also alleges he was assaulted, while Lyttle is said to have encountered trespassers at his home.

The Metropolitan Police confirmed they are investigating incidents in Westminster between 8 July and 15 August, where a man claimed to have been followed by unknown individuals.
Greater Manchester Police are also examining the allegations while Kent Police investigate offences in the Sevenoaks area. A report has also been made to the UK Information Commissioner’s Office.

Ashley’s move to take control of Boohoo, founded by Kamani and Carol Kane in 2006, also comes after the online retailer underwent a £222 million debt refinancing, and posted a disappointing half-year trading update.
Adding to fears raised over the changes are Ashley and Kroll’s past deals - as the businessman has faced criticism for acquiring businesses, placing them into administration, and reacquiring them cheaply. Critics have questioned the group’s ethical practices, especially its treatment of workers at subsidiaries.

These include cases such as USC, where employees were allegedly dismissed with only 15 minutes’ notice, and other acquisitions like Prevu and Base Childrenswear, have raised ethical concerns.

Frasers’ aggressive expansion strategy also involved working with Kroll on global acquisitions such as Holdsport Group in South Africa and Twin Sport in the Netherlands.

With shareholders set to decide on Friday, the outcome could shape Boohoo’s leadership and future amid one of the most turbulent periods in its history.