Debenhams dealt blow as shareholder Frasers blocks three votes at AGM

Debenhams Group has been hit by fierce opposition from shareholder and retail rival Frasers Group at its annual general meeting.

The online retail firm, which was recently renamed from Boohoo, saw three resolutions fail to pass at its meeting on Friday as a result.

The company also saw a heavy vote against its payment plans for bosses at the meeting, but ultimately saw the deal pass.

It is the latest move in an increasingly bitter row between Debenhams and Mike Ashley’s Frasers Group, which owns an almost 29% stake in Debenhams.

Frasers voted against a raft of resolutions at the AGM in its latest signal over its frustrations regarding the performance of the business, which has seen its share value drop by more than half over the past year.

Debenhams said after the meeting that its resolutions 11, 12 and 13 did not pass at the meeting after failing to reach the necessary 75% due to votes from a “major competitor”, understood to be Frasers.

Two of the blocked votes related to the “disapplication of pre-emption rights”, which related to the process allowing companies to issue new shares in order to raise funds.

The third vote related to the ability of Debenhams to purchase more of its own shares.

In a statement, Debenhams said: “These special resolutions were in customary form and of a type which are regularly recommended by boards as being in the best interests of all shareholders.

“Whilst these special resolutions have not been passed, the board would like to reassure shareholders that this is not expected to have any material impact on the group going forwards.”

The company’s board of directors said they are focused on delivering the group’s “turnaround strategy”, which has seen the company consider the sale of its PrettyLittleThing brand.

A vote on the payment packages for bosses at Debenhams also saw significant opposition, led by Frasers, but passed after receiving 56.5% of votes in its favour. It needed a majority to pass.