Mike Ashley’s Frasers Group has upped its stake in Boohoo once again, less than two weeks after becoming the Manchester fast fashion firm’s biggest single shareholder.
The owner of the Sports Direct and Flannels brands increased its shareholding in Boohoo to 15.1% from 13.4%, with the group now owning 191.8 million shares, according to filings.
Earlier this month, Frasers overtook the co-founder of Boohoo – Mahmud Kamani – to become the largest single shareholder in the fashion company.
The latest move means Frasers owns a stake in Boohoo worth £56.6 million, based on Friday’s closing share price of 29.52p.
Frasers first snapped up a stake in Boohoo in June, initially taking a five per cent holding, saying at the time that it saw “potential synergies” between Boohoo and two of its brands, I Saw It First and Missguided, and hoped it would lead to collaborations.
The stake-building in Boohoo comes as the online retailer has suffered hefty share price falls – down 43% over the past six months – as sales have suffered amid the cost-of-living crisis and a turnaround plan.
Boohoo warned earlier this month that full-year sales could tumble by up to 17% as under-pressure shoppers cut back. The retailer also lowered its guidance for the year to February 2024 to between £58 million and £70 million.
Boohoo is just one of a raft of rival retailers that Frasers has been snapping up stakes in as it expands its empire.
It revealed in June that it had built up an 8.9% stake in electrical retailer Currys, adding to its holding in online electrical firm AO World, while it increased its holding in online fashion group Asos to nearly 20% in August.
The group, majority owned by former Newcastle United boss Ashley, said earlier this year that investments are “a core part” of the company’s DNA.
