Debenhams suffers setback as shareholder Frasers vetoes three resolutions during Annual General Meeting
In a heated annual general meeting (AGM), Debenhams faced fierce opposition from its retail rival, Frasers Group. The UK-based retailer, which was recently renamed from Boohoo, was the primary force behind the blocking of three resolutions at the meeting.
The resolutions in question - numbers 11, 12, and 13 - were related to the disapplication of pre-emption rights and the company's ability to purchase more of its own shares. These resolutions did not pass due to votes from Frasers Group, which owns an almost 29% stake in Debenhams.
Frasers' vote against these resolutions was a signal of its frustrations regarding Debenhams' performance. The retail group has been vocal about its dissatisfaction with the company's management and strategy, leading to an increasingly bitter row between the two entities.
The failed resolutions, however, did not significantly impact Debenhams going forward, according to the company's board. They reassured shareholders that the company is focused on delivering its turnaround strategy, which includes considering the sale of its PrettyLittleThing brand.
The AGM also saw a heavy vote against Debenhams' payment plans for its bosses, led by Frasers. The vote on the controversial salary packages for executives, headed by CEO Dan Finley, saw significant opposition. Despite this, the payment plans passed with 56.5% of votes in its favor, meeting the requirement for a majority to pass.
The past year has been challenging for Debenhams, with its share value dropping by more than half. Despite this setback, the company is determined to turn things around and continue its operations. The future of the company, however, remains uncertain as the dispute with Frasers Group continues to escalate.
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