Mike Ashley’s Frasers Group has urged Boohoo shareholders to dismiss the online fashion retailer’s co-founder Mahmud Kamani and replace him with the Sports Direct tycoon.

Frasers, which is Boohoo’s largest shareholder, said Mr Kamani “must go” after overseeing a sharp plunge in its shares over the past three years.

Mr Kamani had been executive chairman of the business but in a separate statement on Thursday, Boohoo said he will now move to become executive vice-chairman.

Tim Morris, a board member of the business since 2021, has now taken the role as chairman.

Frasers stressed that the change in role did not change its view that Mr Kamani must step away from the group he co-founded in 2006.

A spokeswoman for Frasers said: “His title might have changed but his grip on the company has not.

“Recent events, in particular the interim results, lack of transparency and further supply chain allegations, should leave shareholders in no doubt – Mr Kamani must go.”

Frasers called on Boohoo shareholders to vote to remove Mr Kamani and to appoint Mike Ashley as the next chief executive of Boohoo and Mike Lennon to be a director at the firm.

Earlier this month, Boohoo snubbed Mr Ashley’s efforts to become chief executive by appointing Dan Finley as its new boss to replace John Lyttle.

It also comes after Boohoo raised £39.3 million in new funding to help drive efforts to turn around its recent slump in sales.

The retailer and rival Asos, which also counts Frasers as a shareholder, has seen recent sales slide amid pressure from Asia-based rivals Shein and Temu.