Richard Wormack, a former IT contractor has made a claim of £118.5m against Mahmud Kamani, the billionaire founder of Boohoo, for breach of an agreement he states was made back in 2006.
JMW Solicitors is representing Richard Wormack are stating that Mr Kamani approched their client to develop a website to sell online clothing. Part of the payment for this was an offer of 10% of the shares in the company.
In return, he says he spent almost two years building the infrastructure for the website and ‘developing bespoke stock management software as part of the process.’
Mr Womack claims to have created the coding of the website, the database, integrated stock lines, organised and bought equipment for photoshoots, decided the ‘look and feel’ of the website and chose the ‘Boohoo’ logo.
He says he became heavily involved in the ‘management and control of Boohoo, including negotiating contracts, placing orders, dealing with complaints and working on commercial issues beyond the website, developing key ideas for concepts and running marketing campaigns.’
Mr Womack claims he has never been rewarded for the work undertaken for the Boohoo website since 2006. What Mr Wormack claims as his “reward” for the work undertaken is where the grey area comes in that will hopefully be resolved.
Mr Wormack stated to the media: “When I look back on those years, I remember how much time and energy – how much of my life – was invested in creating the Boohoo e-commerce platform and making a success of the business during the brand’s early years.
“It has continued to sap my energy since – it’s very galling to have had zero recognition for the part I played and the time, the money and expertise I invested.”
A spokesperson for Mr Kamani confirmed Richard Womack provided IT services to Boohoo in 2006 but that his most recent ‘allegations are entirely without merit.’
Adding: “Most recently in February of this year lawyers acting for Womack sent a letter before action, again seeking payment of millions of pounds from Mr Kamani.
“Pannone Corporate (representing Mr Kamani) has responded fully to Womack’s latest allegations.
“Womack’s allegations are entirely without merit. No monies are due and owing to Womack. Any claim which is formally served on Mr Kamani, will be met with an application to strike it out.”
WHO ARE BOOHOO?
Boohoo.com is a UK-based online fashion retailer, aimed at 16–30 year olds women. The business was founded in 2006, and had sales in FY2018 of almost £580m. It specialises in own brand fashion clothing, with over 36,000 products.