Retail mogul Mike Ashley’s Frasers Group has become the predominant shareholder in online fashion retailer Boohoo, overtaking founder Mahmud Kamani.
Frasers Group, the parent company of Sports Direct, Flannels, and House of Fraser, increased its stake in Boohoo from 10.4 per cent to 13.4 per cent, as confirmed by regulatory filings.
This investment move follows Frasers Group’s initial acquisition of a 5 per cent stake in Boohoo in June, steadily raising its shares throughout the summer.
Ashley, previously the owner of Premier League football club Newcastle United, maintains control over Frasers Group with his 72 per cent stake.
Meanwhile, Boohoo faced a challenging week in the market, witnessing a significant drop in its shares to an eight-year low. The company slashed its sales and profit forecasts, projecting a potential 17 per cent decline in sales for the 12 months ending February 2024.
It also revised annual profit estimate of £ 58 million to £ 70 million, down from the previously anticipated £ 69 million to £ 78 million.
Revenue plummeted by 17 per cent to £ 729.1 million due to a loss of 2.2 million customers, coupled with a decline in order numbers by 5.1 million, totalling 23.2 million.
