Frasers Group, the owner of Sports Direct, has increased its stake in online fashion retailer Boohoo to 11.85%, making it the company’s largest shareholder..
Frasers Group, owned by British billionaire Mike Ashley, reported to the stock market on Tuesday that it now holds 39,172,256 shares in Boohoo, up from 9.8% or 33,197,648 shares previously..
The move comes after Frasers Group first revealed it had bought a 5.8% stake in Boohoo in June 2021, just days after Boohoo’s share price had tumbled following an investigation by The Sunday Times which revealed poor working conditions in some of Boohoo’s UK suppliers’ factories..
In August 2021, Frasers Group increased its stake in Boohoo to 9.8%..
Frasers Group’s increased stake in Boohoo follows a turbulent period for the online retailer. In 2022, Boohoo’s shares plummeted by 75% after the company issued a profit warning, citing rising costs and a slowdown in consumer spending..
However, Boohoo’s shares have rebounded slightly in recent months, helped by a positive trading update in March 2023, in which the company said that its sales had grown by 10% in the four months to the end of February..
Frasers Group’s is a British multinational sporting goods retailer headquartered in Shirebrook, Derbyshire. The company was founded in 1982 by Mike Ashley, who remains the company’s majority shareholder and chief executive..
Frasers Group is the largest sporting goods retailer in the United Kingdom and Ireland, and also operates stores in Europe, the United States, and Australia. The company’s brands include Sports Direct, Flannels, House of Fraser, and Jack Wills..
Boohoo is a British online fashion retailer headquartered in Manchester, England. The company was founded in 2006 by Mahmud Kamani and Carol Kane, who remain the company’s joint chief executives..
Boohoo is one of the world’s largest online fashion retailers, and sells clothing, shoes, and accessories for women, men, and children. The company’s brands include Boohoo, BoohooMAN, PrettyLittleThing, Nasty Gal, and Karen Millen..
Frasers Group’s increased stake in Boohoo is likely to be seen as a vote of confidence in the online retailer’s long-term prospects. The move could also pave the way for a closer relationship between the two companies in the future..
