Boohoo’s Carol Kane avoids investor revolt at AGM to gain overwhelming shareholder support
Boohoo co-founder Carol Kane avoided a dreaded investor revolt to oust her as a director today, instead gaining overwhelming support from shareholders.
Some 88 percent of Boohoo’s shareholders voted to retain Kane in her role as the company’s executive director at today’s general meeting.
Ahead of the AGM, it was reported that Boohoo was facing an investor rebellion, with shareholders and advisers concerned about Kane’s role in the Leicester labor abuse scandal that rocked the fashion company. last summer.
The Financial Times first reported that two influential advisers proposed to investors to vote against Kane’s re-election, arguing that Boohoo’s supply chain problems developed under his watch.
Group CEO John Lyttle said: “We are delighted with the overwhelming support received from shareholders for the passage of all resolutions at our AGM, including the re-election of co-founder Carol Kane.
“Carol plays an essential role in establishing the identities behind each of the brands of our multi-brand platform, and as co-founder of the group, her dynamism, enthusiasm and unwavering support for our program for the change will be essential to deliver change for the benefit of all stakeholders.
A Sunday Times investigation last summer alleged that staff faced low wages and poor working conditions at a Leicester garment factory, which was a supplier to Boohoo.
An independent review by Alison Levitt QC in September found the investigation’s claims to be true and, in response, Boohoo ended its relationship with more than 60 suppliers in Leicester.
Since then, the online fashion retailer has taken a tough stance on suppliers, including promising to remove them from the retailer’s supply chain list if an alert is issued about them.