British retail group Frasers Group has increased its stake in online fashion retailer Asos to almost 20%, according to a report by Sky News on Tuesday.
The group, owned by Mike Ashley, has been building its stake in Asos gradually over the past few months, and now owns 19.73% of the company’s shares, according to Sky News.
The move comes at a time when Asos is facing a number of challenges, including the rising cost of living and the ongoing war in Ukraine, which have led to a decline in consumer spending.
Asos has also been hit by a number of operational issues, including problems with its supply chain and a fire at its distribution center in Barnsley, UK, which have resulted in delays and cancellations of orders.
The company has responded to these challenges by cutting costs and raising prices, but it is yet to see a sustained recovery in its share price.
Frasers Group’s increased stake in Asos could be a sign that Ashley is confident in the company’s long-term prospects, despite its current challenges.
Frasers Group is a retail conglomerate with a portfolio of brands including Sports Direct, House of Fraser, Flannels, and Jack Wills.
The group has a history of acquiring stakes in other retailers, including Debenhams, which it bought out of administration in 2020.
It is not yet clear what Frasers Group’s intentions are for its stake in Asos, but it is likely that the group will seek to play a more active role in the company’s management.
Asos is one of the UK’s largest online retailers, with over 23 million active customers worldwide.
The company sells a wide range of fashion and beauty products, including clothing, footwear, accessories, and homeware.
Asos has been facing a number of challenges in recent months, but it remains a major player in the online fashion market.
It will be interesting to see how Frasers Group’s increased stake in the company affects Asos’s strategy and operations in the coming months and years..
