ike Ashley’s Frasers Group has upped its stake in fashion firm Boohoo in the latest move to boost its holdings in online retail players.
The company behind Sports Direct has increased its holding in Boohoo to 9.1% from 7.8%, meaning it now owns 115.4 million of its shares, worth around £38.3 million.
Frasers first snapped up a stake in Boohoo in June, initially taking a 5% holding, saying at the time that it hoped the move would lead to collaborations between the fashion group and its existing brands I Saw It First and Missguided.
It said in June: “Boohoo is an attractive proposition to us with its laser focus on young female consumers.
“We see potential synergies and an opportunity to strengthen our own brand proposition in collaboration with Boohoo, most obviously with Frasers Group brands I Saw It First and Missguided.”
It also 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.
Frasers also owns stakes in Asos and upmarket brand Hugo Boss, among others.
The group, majority owned by former Newcastle United boss Mr Ashley, said earlier this year that investments are “a core part” of the company’s DNA.
“We have a clear strategy to identify opportunities to invest in businesses which complement our existing sport, premium and luxury businesses, or help us to build and further utilise our sector-leading ecosystem,” it said.
Its stake buying in Boohoo follows a difficult recent time for the fashion brand, which has seen its share price collapse, down more than 73% in the past year.
Boohoo sunk to a loss of almost £91 million in the year to February 28 from a profit of £7.8 million the prior year, after sales slipped by 11%.
It has been hit as the pandemic-driven boom in online buying has eased off, with its customers also under pressure amid the cost of living crisis, while trading has been impacted by surging return rates.