ASHLEY BUYS ANOTHER TRANCHE OF BOOHOO

FRASERS Group has raised its stake in Boohoo.

The retail giant, whose brands include Sports Direct, House of Fraser and Flannels, increased its shareholding in the fast fashion business from 16.5pc to 17.2pc.

Frasers – which is controlled by Mike Ashley – has been building holdings in Boohoo as well as rival Asos since the summer.

It first invested in Boohoo in June when it took 5pc

. At the time, it said two of its own fashion labels - I Saw It First and Missguided - had a similar young female customer base to Boohoo, giving it scope for collaborations. Frasers Group became the biggest shareholder in Boohoo in October.

Boohoo slashed its profit expectations for the year at an update to investors in October. It has also warned that sales will drop by as much as 17pc over the year.

The post pandemic era has seen fortunes reverse as High Street staples including Marks & Spencers and Next have enjoyed soaring sales thanks to shoppers returning to bricks-and-mortar stores.