Mike Ashley’s empire becomes largest shareholder in troubled Boohoo

Mike Ashley has become Boohoo’s largest shareholder after raising his stake once again.

The retail tycoon’s Frasers Group – which owns Sports Direct, Flannels and House of Fraser – increased its holding in the online fashion retailer from 10.4 per cent to 13.4 per cent, according to a regulatory filing.

That made him Boohoo’s largest shareholder ahead of founder Mahmud Kamani, who holds a 12.5 per cent stake. Frasers is run by Ashley’s son-in-law Michael Murray, who took over last year.

The group first bought a stake in Boohoo in June, taking a 5 per cent holding, and it has increased this several times over the summer. Boohoo has been seen as an appealing investment thanks to its ‘laser focus on young female consumers’, a Frasers spokesman said at the time. Ashley, who is the former owner of Premier League football club Newcastle United, controls Frasers through his 72 per cent stake.

Frasers has swooped on several other firms in recent months, building a 10 per cent stake in Boohoo rival Asos and acquiring an 18.9 per cent stake in AO World, later hiked to 22 per cent, making it the largest shareholder.

Stylish: Boohoo also owns the Karen Millen brand, which has collaborated with model Elle Macpherson

The retail empire, which Ashley built from a single sports store in Maidenhead, also includes Jack Wills, Evans Cycles and menswear retailer Gieves & Hawkes.

Boohoo also owns the Karen Millen brand, which has collaborated with model Elle Macpherson.

It comes in the same week that Boohoo shares crashed to an eight-year low after it slashed its sales and profits forecasts.

Boohoo said sales in the 12 months to the end of February 2024 could be down as much as 17 per cent on the previous year. 

It also said it expects annual profits of £58m to £70m having previously pencilled in £69m to £78m. 

Revenues fell 17 per cent to £729.1m as it lost 2.2m customers and order numbers fell by 5.1m to 23.2m. 

Boohoo shares gained 1.1 per cent, or 0.33p, to 30.33p yesterday. Frasers added 2.2 per cent, or 17.5p, to 823p.