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Mike Ashley’s Frasers Group has reportedly snapped up a stake in embattled online retailer Asos.
Frasers notified Asos it had become a “significant” shareholder late on Friday of last week (21 October).
It is believed the move will make Frasers the fourth biggest shareholder at around 5% but still significantly behind its largest shareholder Anders Holch Povlsen who holds a 26% stake.
The news comes after Asos has seen its shares plunge over the year with it also recently revealing its profits plummeted 105% to a loss of £9.8m in its latest full-year results, down from profits of £190.1m, as customers reigned in their spending amid the cost of living crisis.
The group noted consumer behaviour underwent a “marked change” from April 2022 when consumers faced accelerating inflation and pressure on disposable incomes, with less demand for products at the start of the Autumn/Winter season.
Frasers also confirmed it has upped its stake in Hugo boss to 4.3% directly and an extra 28.5% through the sale of put options.
Frasers said: “The strategic investments Frasers Group makes offer new opportunities for The Company, whilst also helping to support the long-term future of the existing retail businesses, and the many thousands of jobs they sustain.
“Frasers Group continues to see opportunities that strengthen Frasers Group’s brand proposition and the recent acquisitions of Studio Retail Limited and Missguided are examples of its drive to expand and acquire businesses and brands that can strengthen Frasers Group, and the connection to our consumers.”
