(Alliance News) - Frasers Group PLC founder Mike Ashley believes boohoo Group PLC "is in desperate need" of his guidance and called on the AIM listing to not turn to a "fire sale" of its assets.

In a letter to boohoo shareholders on Sunday, Ashley said the online fashion retailer is currently a "catastrophic mess" and took aim at a near 90% share price slide over the past five years.

"That's not bad luck; that's gross mismanagement. Shareholders have every right to feel angry and frustrated. When I look at boohoo, I see brands that are underperforming and no clear strategy to halt the decline. I see panic-driven mismanagement resulting in reckless decisions that are obliterating shareholder value and jeopardising the company's future. The recent game of musical chairs – appointing Dan Finley as CEO, Mahmud Kamani as executive vice chairman and Tim Morris as chairman – is the epitome of chaos, a desperate attempt to mask dysfunction at the top," Ashley added.

Ashley founded Sports Direct owner Frasers, which owns around 28% of boohoo. Frasers had tried to install Ashley as the as boohoo chief executive. boohoo last month, however, announced Dan Finley as its new CEO, replacing John Lyttle.

At a general meeting on December 20, boohoo shareholders will vote on a pair of resolutions tabled by Frasers. Frasers wants to add Ashley and Michael Lennon to the boohoo board.

Ashley believes that if he was to join the boohoo board, he would offer "fresh ideas, constructive support, and the much-needed accountability boohoo desperately needs".

"boohoo is in desperate need of the guidance I can provide. When I met with Dan Finley last week, we discussed a number of opportunities, particularly around Debenhams, and we both agreed on the enormous potential to scale that brand. I'm excited at the prospect of working collaboratively with Dan to turn around the group," Ashley's letter said on Sunday.

Key to a boohoo turnaround will be avoiding "a fire sale of assets at knockdown prices". boohoo had announced a strategic review in October.

Ashley said: "Debenhams should not be sold and if any other non-core asset sales are deemed necessary, I will insist on a rigorous process to maximise value, with independent advisors and shareholder consultation before any decisions are made.

"I also want to explore the options for more cost-effective and sustainable financing. I have assurances from Frasers, as the major shareholder, that they are committed to supporting these efforts."

The back and forth between Frasers and boohoo culminates with the shareholder vote later this month. boohoo has urged investors to vote against the proposed board additions, believing "Frasers' demands are not in the best interests" of the company.

"The board has a credible plan to unlock and maximise value for the benefit of all shareholders

through its business review and in Dan Finley has the right CEO to lead the business," boohoo has said.

By Eric Cunha, Alliance News news editor

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