Mike Ashley’s Frasers Group has upped its stake in Boohoo to more than 26% as it continues to build on its “strategic investment” into the fashion retailer.
The retail giant – which is the largest shareholder in the online business – increased its holdings from 25.02% to 26.19% on Monday (2 September).
The Sports Direct owner has been steadily building its holding in Boohoo since it first made a “strategic investment” in June 2023. At the start of the year, it solidified its position as the retailer’s largest shareholder taking a 22% stake.
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Frasers Group chief executive Michael Murray fuelled takeover speculations last year when he described the group’s investments into Boohoo, as well as Asos, Currys and AO, as “mid-flight”.
Speaking to The Telegraph last October, he said: “All I can do is talk about how it looks very obvious afterwards.
“Flannels was an acquisition, and now it seems normal that Flannels is a part of Frasers Group. And Game, you think: why would you buy 30% of Game? Afterwards, it’s all very obvious.”
Back in May, Boohoo’s losses ballooned to almost £160m as it encountered “difficult market conditions” caused by high levels of inflation and weakened consumer demand as it grapples with intense competition from the likes of Shein.
Last month, reports emerged that the business is considering a sale of its London Soho office building that it acquired in 2021 for £72m.
It comes as the group’s lenders are understood to have drafted in advisers at FTI Consulting to discuss refinancing options for part of Boohoo’s £325m debt.
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