Business

Frasers’ stake in Boohoo goes up to 16.5 per cent

Boohoo reported a 17 per cent decline in its revenue at £729.1 million for the six months to August. (REUTERS/Dado Ruvic/File Photo)

By: Chandrashekar Bhat

SPORTSWEAR major Frasers Group has further increased its stake in the fashion retailer Boohoo to 16.5 per cent.

It comes weeks after Frasers’ shareholding in Boohoo surpassed the 12.5 per cent stake held by the Manchester-based company’s founder Mahmud Kamani.

In June this year, the group controlled by entrepreneur Mike Ashley bought a five per cent stake in Boohoo, saying the fast fashion retailer was an “attractive proposition” through its “laser focus on young female consumers”.

By October 16, Frasers’ stake in Boohoo rose to 15.12 per cent before its interest went by another 1.4 percentage point, according to regulatory filings.

This move comes amid a longstanding rivalry between Ashley and Kamani who both have sought to expand their business empires through strategic acquisitions.

Frasers, formerly known as Sports Direct, has also acquired a 23 per cent stake in Boohoo’s rival Asos as it continued to expand its portfolio.

Earlier this month, Boohoo revealed a 17 per cent decline in its revenue at £729.1 million for the six months to August as the retailer warned that sales could fall by more than expected this year.

It also reported a 10 per cent drop in the sales of its core brands including Pretty Little Thing, Karen Millen and Debenhams.