Boohoo’s Carol Kane staves off investor revolt at AGM to win overwhelming shareholder backing
Boohoo co-founder Carol Kane has avoided a feared investor revolt to oust her as a director today, instead winning overwhelming shareholder support.
Some 88 per cent of Boohoo shareholders voted in favour of Kane continuing in her role as an executive director at the company at today’s general meeting.
Prior to the AGM, there were reports that Boohoo was to face an investor rebellion, with shareholders and advisers concerned about Kane’s role in the labour abuse scandal in Leicester that rocked the fashion company last summer.
The Financial Times first reported two influential advisers had proposed investors vote against the re-election of Kane, arguing that Boohoo’s supply chain problems developed under her watch.
Group CEO John Lyttle said: “We are delighted with the overwhelming support received from shareholders in passing all resolutions at our AGM, including the re-election of co-founder Carol Kane.
“Carol plays an integral role in establishing the identities that sit behind each of the brands on our multi-brand platform, and as a co-founder of the group her drive, enthusiasm and unwavering support for our Agenda for Change will be crucial in delivering change for the benefit of all stakeholders.”
A Sunday Times investigation last summer alleged staff faced low pay and poor working conditions at a garment factory in Leicester, which was a supplier of Boohoo.
An independent review conducted by Alison Levitt QC in September found the investigation’s claims to be true, and in response Boohoo terminated relationships with more than 60 Leicester suppliers.
Since then, the online fashion retailer has taken a tough stance on suppliers, including vowing to remove them from the retailer’s supply chain list if an alert is raised about them.