Mike Ashley gets on board Hornby train with consultancy deal

Mike Ashley has agreed to act as a consultant to model train maker Hornby as his retail empire continues to build a stake in the business.

Ashley’s Frasers Group last month upped its stake in Hornby to 8.9 per cent as part of a broader sweep of strategic investments that has seen Frasers build positions in the likes of Boohoo, Currys and Asos.

Hornby told shareholders on Wednesday that Ashley had entered into a consultancy agreement with the business via his firm Mash.

It said Ashley, who founded his empire in 1982 before stepping back and handing the reins to son-in-law Michael Murray in 2022, would ‘support’ chief executive Olly Raeburn and the wider business.

Ashley’s focus will be on Hornby’s ‘systems, operations, logistics and, where relevant, broader matters of strategy’, the London-listed retailer said.

The agreement, for which Ashley won’t be paid, is intended to add ‘value for the respective shareholders of Hornby and Fraser Group’.

Horny, whose roots go back to the early 1900s, has seen its shares add nearly 140 per cent since the start on 2024, driven by Frasers’ growing interest in the group.

Hornby shares were up 2.4 per cent to 36.5p in early trading.

Frasers finance chief Chris Wootton said in February that Hornby had a portfolio of ‘unique heritage brands’ and ‘we look forward to exploring opportunities to further leverage our scale in retail logistics and distribution’.

The strategic investment spree has also seen it take stakes in London-listed white goods company AO World and upmarket fashion brand Hugo Boss. Earlier this month it Frasers bought cycling brand Wiggle out of administration.

But Frasers could not revive the fortunes of Matches Fashion, which went into administration less than three months after its acquisition.

Frasers shares were up 0.4 per cent to 788.5p in early trading.