MP Liz Kendall has written to major fund managers demanding that they oust Boohoo CEO John Lyttle and executive chair Mahmud Kamani over the Leicester factory scandal.
In a letter specifically addressed to Nichola Pease, the chair of Jupiter – Kendall notes that she firstly welcomes the actions Boohoo are taking to remedy the shortcomings but severely doubts the current management are the ideal candidates to take the business forward:
“I do not believe those who have for years turned a blind eye to one of the worst ESG scandals of modern times are the right people to oversee the radical changes that are now required. That’s why I am calling on Jupiter, Invesco, Baillie Gifford and Boohoo’s other shareholders to demand the removal of the current Chief Executive and Executive Chair. “Letter sent by Liz Kendall to Ms Nichola Pease – 5 October
The MP for Leicester West then goes on to note the recent independent review by Ms Levitt noted that the Boohoo supply chain had been ‘inadequate for many years’ and highlights a quote that states ‘its internal processes were well blow the standard expected for a company and size of its status’.
The share price of Boohoo has largely recovered from the heavy falls – currently standing at 356p, slightly off its peak of around 410p prior to the news of malpractice in its supply chain surfacing in June.
However, despite a roaring interim financial performance, shares have not yet kicked on further which suggests market concerns still linger over the outfall from the Leicester factory scandal.