Latest news with #MahmudKamani
Yahoo
8 hours ago
- Business
- Yahoo
Mike Ashley demands investigation into Boohoo founder's debt collecting
Mike Ashley has demanded an independent investigation into attempts by Boohoo's founder to collect a £100,000 personal debt by taking a cut of payments from one of its suppliers. In a letter to Tim Morris, Boohoo's independent chairman, lawyers for Mr Ashley's Frasers Group said its founder and executive vice chairman Mahmud Kamani must be suspended 'immediately' pending the outcome of an investigation. Lawyers at White and Case said they had sent the letter, which was also published on the London Stock Exchange, directly to Mr Morris 'due to the seriousness of the issues raised with regards to the conduct' of Mr Kamani. The demand comes after The Telegraph last week revealed Mr Kamani's debt collection demands with one supplier, publishing angry WhatsApp messages sent by the retail tycoon. Frasers Group, which owns Sports Direct and House of Fraser, is Boohoo's biggest shareholder in Boohoo with a 30pc stake. Lawyers for Frasers said they were seeking 'urgent reassurance' that the revelations would be 'properly and independently investigated'. The letter said: 'Frasers also considers that it is your responsibility, as well as that of the entire board of directors of Boohoo, to protect Boohoo and its shareholders from Mr Kamani and any of his associates who may be complicit in these matters. 'These allegations are very serious and damaging to the reputation of boohoo. If proven, it appears that Mr Kamani may have breached his duties as a director of Boohoo and could also have committed various criminal offences.' In the messages, Mr Kamani, who retains a 12.5pc stake in Boohoo, claimed he was owed £100,000 by Anjum Majid, the father of the owner of PDQ Textiles. He instructed a middleman in its supply chain to deduct 20p per garment from payments to PDQ Textiles, a Manchester company with factories in Pakistan, in order to collect the personal debt. In the WhatsApp conversation from 2023, Mr Kamani said: 'I want my £100k... please deduct 20p per garment from all his son's orders... with immediate effect all deliveries from today.' He appeared to suggest that Boohoo would punish PDQ Textiles if it attempted to increase prices in response, saying: 'I have told my buyers also any increase in prices and it will become very difficult and business will get affected or stopped.' Mr Kamani said: 'I will personally be signing off the orders and making sure the account is monitored. Please let's keep this clean or problem.' At the time, Boohoo declined to comment on whether deductions were paid to Mr Kamani and did not respond to requests for comments about its financial arrangements with the middleman and its founder. A spokesman for the company said: 'The loan predates the group's IPO [stock market debut] in 2014 and remains unpaid. We have no further comment.' Boohoo was contacted for comment on Thursday. 'Forensic review' Frasers said any investigation must be completely independent and should involve a 'forensic review' of emails and any other communications such as WhatsApp used by directors at the time of the transactions, as well as those of employees involved in financial reporting, sales, and internal controls. It also demanded a background check into Boohoo's suppliers and interviews of any relevant employees or directors. It added: 'Failing to preserve potentially relevant documents could have serious consequences for Boohoo and the relevant individuals, including the incurrence of criminal liability for attempting to conceal information from law enforcement. 'Frasers suggests that following your receipt of this letter, Frasers meets with you to discuss the steps you intend to take.' The demand for an investigation will come as a fresh blow to Boohoo, which has claimed to have pushed through reforms within its supply chain. It followed an independent report which previously found 'weak corporate governance' in relation to malpractice in its supply chain. In 2021, it culled more than 400 suppliers following allegations of poor working conditions and low pay at Boohoo factories. However, the company has since faced mounting scrutiny over internal practices amid concerns over management from Frasers. At the turn of the year, Frasers sought to oust Mr Kamani from Boohoo, saying its 'dismal' financial results and lack of transparency meant the Boohoo founder 'must go'. At the time, Frasers wrote to fellow Boohoo shareholders to raise concerns over governance. Frasers had pointed to alleged payments by Mr Kamani's son Umar, the founder of the PrettyLittleThing brand, of which Boohoo acquired full control in 2020 for up to £324m. Boohoo hit back at Mr Ashley's attempted coup, claiming that the Sports Direct tycoon had an 'ulterior motive'. In December, Boohoo shareholders rejected a proposal to install Mr Ashley to the Boohoo board. Boohoo at the time said: 'We remain focused on delivery of our business review with the objection of unlocking and maximising value for all shareholders.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
2 days ago
- Business
- Yahoo
Boohoo founder should be investigated over debt collection, says Mike Ashley
Mike Ashley's Frasers Group has urged Boohoo to suspend and launch an investigation into the online fashion firm's chairman and founder over reported debt collection tactics. Earlier this week, the Telegraph reported Mahmud Kamani sought to collect a £100,000 personal debt by taking a cut of payments to one of its jeans suppliers. It comes amid increased friction between Frasers founder Mr Ashley and retail rival Mr Kamani in recent years. In a letter through its legal advisers, Frasers Group – which owns an almost 29% stake in Boohoo – said it had 'very serious concerns' about the reports. In the letter, Frasers said the allegations would be 'very serious and damaging to the reputation of Boohoo'. It said: 'If proven, it appears that Mr Kamani may have breached his duties as a director of Boohoo and could also have committed various criminal offences.' Frasers therefore called for an independent investigation into the founder's conduct and asked for the company to immediately suspend Mr Kamani and his direct associates from any roles at the business. The Telegraph reported Mr Kamani instructed a middleman in its supply chain to deduct 20p per garment from payments to PDQ Textiles, a Manchester company with factories in Pakistan. The article suggested Mr Kamani had made the loans to suppliers through other companies, including Pinstripe Clothing, a private business co-owned by him. It claimed these loans appeared to be repaid by the suppliers to Mr Kamani through a scheme whereby funds were taken from Boohoo and instead deposited into to Mr Kamani's personal accounts or those other companies he owns. Boohoo has been contacted for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
2 days ago
- Business
- The Independent
Boohoo founder should be investigated over debt collection, says Mike Ashley
Mike Ashley's Frasers Group has urged Boohoo to suspend and launch an investigation into the online fashion firm's chairman and founder over reported debt collection tactics. Earlier this week, the Telegraph reported Mahmud Kamani sought to collect a £100,000 personal debt by taking a cut of payments to one of its jeans suppliers. It comes amid increased friction between Frasers founder Mr Ashley and retail rival Mr Kamani in recent years. In a letter through its legal advisers, Frasers Group – which owns an almost 29% stake in Boohoo – said it had 'very serious concerns' about the reports. In the letter, Frasers said the allegations would be 'very serious and damaging to the reputation of Boohoo'. It said: 'If proven, it appears that Mr Kamani may have breached his duties as a director of Boohoo and could also have committed various criminal offences.' Frasers therefore called for an independent investigation into the founder's conduct and asked for the company to immediately suspend Mr Kamani and his direct associates from any roles at the business. The Telegraph reported Mr Kamani instructed a middleman in its supply chain to deduct 20p per garment from payments to PDQ Textiles, a Manchester company with factories in Pakistan. The article suggested Mr Kamani had made the loans to suppliers through other companies, including Pinstripe Clothing, a private business co-owned by him. It claimed these loans appeared to be repaid by the suppliers to Mr Kamani through a scheme whereby funds were taken from Boohoo and instead deposited into to Mr Kamani's personal accounts or those other companies he owns.
Telegraph
2 days ago
- Business
- Telegraph
Mike Ashley demands investigation into Boohoo founder's debt collecting
Mike Ashley has demanded an independent investigation into attempts by Boohoo's founder to collect a £100,000 personal debt by taking a cut of payments from one of its suppliers. In a letter to Tim Morris, Boohoo's independent chairman, lawyers for Mr Ashley's Frasers Group said its founder and executive vice chairman Mahmud Kamani must be suspended 'immediately' pending the outcome of an investigation. Lawyers at White and Case said they had sent the letter, which was also published on the London Stock Exchange, directly to Mr Morris 'due to the seriousness of the issues raised with regards to the conduct' of Mr Kamani. The demand comes after The Telegraph last week revealed Mr Kamani's debt collection demands with one supplier, publishing angry WhatsApp messages sent by the retail tycoon. Frasers Group, which owns Sports Direct and House of Fraser, is Boohoo's biggest shareholder in Boohoo with a 30pc stake. Lawyers for Frasers said they were seeking 'urgent reassurance' that the revelations would be 'properly and independently investigated'. The letter said: 'Frasers also considers that it is your responsibility, as well as that of the entire board of directors of Boohoo, to protect Boohoo and its shareholders from Mr Kamani and any of his associates who may be complicit in these matters. 'These allegations are very serious and damaging to the reputation of boohoo. If proven, it appears that Mr Kamani may have breached his duties as a director of Boohoo and could also have committed various criminal offences.' In the messages, Mr Kamani, who retains a 12.5pc stake in Boohoo, claimed he was owed £100,000 by Anjum Majid, the father of the owner of PDQ Textiles. He instructed a middleman in its supply chain to deduct 20p per garment from payments to PDQ Textiles, a Manchester company with factories in Pakistan, in order to collect the personal debt. In the WhatsApp conversation from 2023, Mr Kamani said: 'I want my £100k... please deduct 20p per garment from all his son's orders... with immediate effect all deliveries from today.'
Telegraph
08-08-2025
- Business
- Telegraph
WhatsApp messages reveal Boohoo tycoon's debt collection tactics
The founder of the troubled fast-fashion empire Boohoo sought to collect a £100,000 personal debt by taking a cut of payments to one of its jeans suppliers, The Telegraph can reveal. Mahmud Kamani, 61, who is currently Boohoo's executive vice-chairman, instructed a middleman in its supply chain to deduct 20p per garment from payments to PDQ Textiles, a Manchester company with factories in Pakistan. According to angry WhatsApp messages seen by The Telegraph, Mr Kamani claimed he was owed £100,000 by Anjum Majid, the father of the owner of PDQ Textiles. Mr Kamani, who founded Boohoo in 2006 and retains a 12.5pc stake, told the middleman: 'I want my £100k... please deduct 20p per garment from all his son's orders... with immediate effect all deliveries from today.' As part of the same conversation in 2023, Mr Kamani appeared to suggest that Boohoo would punish PDQ Textiles if it attempted to increase prices in response. He told the middleman: 'No increases in prices will be acceptable under any circumstances... I have told my buyers also any increase in prices and it will become very difficult and business will get affected or stopped. 'I will personally be signing off the orders and making sure the account is monitored. Please let's keep this clean or problem.' The messages are likely to raise fresh concerns about Boohoo, which is under severe pressure from falling sales and looming debt repayments. It was previously rocked by independent findings of 'weak corporate governance' in relation to malpractice in its supply chain. Boohoo pledged reforms in response. The company declined to comment on whether deductions from the payments it made to the middleman for PDQ Textiles products were paid to Mr Kamani. It declined to explain what Mr Kamani meant by 'let's keep this clean or problem' and did not respond to questions about its financial arrangements with Mr Kamani and the middleman. The loan to Mr Majid was made via Pinstripe Clothing, a private company personally co-owned by Mr Kamani which now trades as Pinstripe Property. It is not part of Boohoo and Mr Kamani remains a director. Boohoo, which is listed on London's junior market, Aim, did not comment on whether investors had been made aware of its involvement in collecting debts. It reached a peak valuation of more than £5bn during the pandemic home shopping boom – more than M&S at the time. Today, the company's valuation has collapsed to less than £230m. A company spokesman said: 'The loan predates the group's IPO [stock market debut] in 2014 and remains unpaid. We have no further comment.' Mr Majid declined to comment. He is said to claim that most of the debt to Mr Kamani has been repaid via deductions made by the middleman to payments to his son's company. In further messages between Mr Kamani and Mr Majid last year, also seen by The Telegraph, the Boohoo vice-chairman said the deductions from PDQ Textiles garments would be increased to 25p. He threatened to stop Boohoo doing business with the manufacturer over the dispute. He said: 'You wouldn't of [sic] paid till now if you weren't supplying jeans, let's not lie about the real truth and reality of this situation.' 'Only £30k been paid at f---ing 10p garment. You still owe me over £100k with interest. Don't bull---- me and get busy telling me it's paid! 'If you get busy I will deduct the whole outstanding straight away. 'Don't get clever otherwise I will get double clever. I have no problem to stop the business and then you keep my money. Enough is enough.' Boohoo's biggest shareholder, with 29pc, is Frasers Group, controlled by billionaire Mike Ashley, who at the turn of the year made an unsuccessful attempt to oust Mr Kamani. The Sports Direct owner subsequently wrote to other shareholders, which includes the City institution Schroders, raising concerns over governance. Frasers flagged alleged payments by Mr Kamani's son Umar, the founder of the PrettyLittleThing brand, of which Boohoo acquired full control in 2020 for up to £324m. Mr Kamani, the Manchester-raised, Kenyan-born son of Indian parents, joined the ranks of Britain's super-rich when Boohoo joined the stock market in 2014, cashing in £240m of shares. Today the company also owns the Karen Millen, Oasis, Warehouse and Debenhams brands following a takeover binge. Mr Kamani also snapped up the Burton, Wallis and Dorothy Perkins labels from the wreckage of his friend Sir Philip Green's Arcadia empire. Financial pressure has been building on Boohoo as its trading has deteriorated amid strong competition from the expanding Chinese player Shein. Boohoo reported a 16pc fall in revenues in the year to February, an accelerating decline. It said it expected to report adjusted underlying earnings for the full year of around £40m. However, Boohoo's full-year report, typically published in May, appears to have been delayed as it attempts to refinance £175m of its debt pile. In the meantime, social media channels are full of customers complaining about month-long delays to refunds and reports have begun to emerge of overdue payments to suppliers.
