Frasers said that in line with its statement at the end of September, it was necessary for Murray’s consultancy firm, MM Prop Consultancy Ltd, and Frasers Group to finalise terms on consultancy service agreements which will terminate prior to Michael Murray’s appointment as CEO on 1 May 2022
Murray is currently ‘head of elevation’ for Frasers Group, which owns the House of Fraser, Flannels and Sports Direct brands. Engaged to Ashley’s daughter, he was tasked with modernising and creating a more upmarket image for the business.
MM Prop Consultancy Ltd is entitled to up to 25% of any value created by services provided to the Group and has agreed to waive contractually due amounts, including part crediting previous payments under this agreement, such that the Group receives a 40% discount as part of the finalisation and cessation of the consultancy agreement.
The final payment to be made by the Group to MM Prop Consultancy Limited following the application of this discount is GBP20.9m (US$26.9m). This paves the way for Murray to take the helm of Frasers Group as CEO on 1 May.
Murray commented: “[I] am confident we are going to take the Group to new heights with the progress we are making in our elevation strategy. I want to ensure we continue to serve our consumers with the world’s best sports, premium, and luxury brands so that we can continue to deliver for our colleagues, shareholders and partners.”
The board added: “The agreement with MM Prop Consultancy Limited has delivered significant financial and strategic value for the Group and its stakeholders. We are delighted that Michael will now drive us forward in our elevation journey, which we are already making strong progress with.”
Frasers has also announced that on 22 April 2022 it purchased 185,070 of its ordinary shares from Liberum Capital Limited (acting as the Company’s broker) at an average price of 696.32 pence per share, as part of the Company’s buyback programme announced on 1 April 2022. The purchased shares will all be held as treasury shares.