Frasers Group has purchased a 5 per cent stake in fashion giant Boohoo. The owner of Flannels, Sports Direct and House of Fraser has become one of the largest single shareholders in Boohoo Group. Mahmud Kamani, a co-founder, is still the principal shareholder.
The announcement comes after some recent business decisions made by Frasers Group. The business bought an 18.9 per cent stake in online electrical store AO World last week in addition to increasing its holding in ASOS to 10.6 per cent.
Earlier this year, the company also purchased a number of ‘non-core UK fashion brands’ from JD Sports. Prior to that, Frasers Group acquired fast fashion chains I Saw It First and Missguided, Australian luxury footwear brand Sneakerboy, and Gieves & Hawkes.
In a statement, Frasers Group said, “Driving growth through strategic investments is a core part of Frasers’ DNA.”
Boohoo Group announced a £ 90.7 million pre-tax deficit last month for the fiscal year that ended on 28th February 2023, with revenues declining 11 per cent to US $ 1.77 billion. But according to the business, results should improve this year.
Due to losses of more than £ 90 million, Boohoo is currently dealing with shareholder anger at its annual general meeting as consulting firms reject CEO compensation.
