Debenhams eyes return to the high street under new owner Boohoo

Influential shareholder advisory bodies ISS and Glass Lewis have urged shareholders to vote against the resolution, arguing that she should be considered accountable for governance failings following criticism of how a supplier in Leicester treated its workers.

ISS and Glass Lewis also told investors to vote down bosses’ pay packages. A bonus scheme was implemented in June 2020, which could lead to Boohoo’s founders and top management receiving £150m if the value of the company reaches £7.5bn over a three-year period. 

ISS called the awards “excessive” and said the plan has the potential to deliver significant payouts. Boohoo’s market cap is £4.2bn.

Mr Lyttle said: “From the conversations that we’ve had with shareholders… it will become obvious that there is an overwhelming support for Carol to remain on the board.” 

Ms Kane set up the retailer with Mahmud Kamani, now executive chairman, in 2006 after acting as middlemen between factories and street brands including New Look and Primark. 

Mr Lyttle’s remarks came as Boohoo unveiled sales soared by almost a third during the three months to the end of May amid a surge in demand for dresses and partywear. 

The company posted a 32pc jump in revenues to £486m, with UK sales rising 50pc during the period and the US recording a 43pc increase. However, sales across the rest of Europe fell 14pc and the rest of the world dropped 15pc, held back by tighter Covid restrictions.   

In an effort to allay investor concerns over worker standards, Boohoo said it will join Fast Forward, a supply chain initiative. Sir Brian Leveson, who is leading an independent review into Boohoo’s supply chain practices, said the company’s due diligence may now go beyond some of its rivals.

Mr Lyttle said that all UK suppliers will be transferred over in the next 12 months for further scrutiny and auditing. It has committed to publishing a full list of the global factories it works with in September.