Frasers increases stake in Boohoo once again
Shirebrook-based retail giant Frasers has once more increased its stake in the Boohoo Group just two weeks after it became the largest individual shareholder in the fast fashion company.
The group, under the control of Mike Ashley and comprising Sports Direct and House of Fraser, now possesses 15.1% of the online fast fashion enterprise, marking an increase from its prior stake of 13.4%.
At the beginning of this month, Frasers overtook Boohoo’s co-founder Mahmud Kamani, securing its position as the fashion company’s largest individual shareholder.
This most recent action now gives Frasers a stake in Boohoo valued at £56.6m, calculated based on the closing share price of 29.52p on Friday.
In recent events, Boohoo experienced a significant decline in its share price after the retailer cut its annual turnover and profit forecasts.
The company’s sales saw a 17% decrease to £729.1m during the six months ending on August 31, with a projected decline of 12% to 17% expected for the fiscal year ending in February 2024.
Throughout 2023, Frasers has been actively engaging in acquisitions, securing stakes in Curry’s and its online equivalent AO World, and Asos, a direct competitor to Boohoo.
