
Frasers Group has upped its stake in Boohoo once again as it continues to build on its investment into the fashion retailer.
According to documents, the firm that owns Sports Direct and Flannels boosted its stake in Boohoo from 15.1 per cent to 16.5 per cent, totaling 209.3 million shares.
Frasers surpassed Mahmud Kamani, a co-founder of Boohoo, earlier this month to take the top spot as the company’s single largest stakeholder.
Frasers originally purchased a 5 per cent interest in Boohoo in June, citing “potential synergies” between Boohoo and two of its brands, Missguided and I Saw It First, and hoping that this would result in partnerships.
Prior to this, Kamani held a combined 25 per cent ownership in Boohoo with co-founder Carol Kane, making him the company’s largest individual stakeholder with a 12.9 per cent stake.
The decision to increase stakes in Boohoo coincides with the online retailer’s severe share price declines, which have dropped 43 per cent over the previous six months due to declining sales despite a turnaround strategy and the cost-of-living issue.
Early this month, Boohoo issued a warning, stating that as consumers feel pressured to make cuts, full-year sales could fall by as much as 17 per cent.
As part of reform plans, it placed the blame on a volume-based sales recovery that was slower than anticipated and shifted its attention to more lucrative sales within its labels.
It is cutting prices to attract cash-strapped consumers during the cost-of-living crisis, while axing costs under an overhaul.