Frasers Group PLC (LSE:FRAS), the retail conglomerate, upped its stake in Boohoo Group PLC (AIM:BOO) for the third time since buying a 5% holding last month, a company statement revealed.
Owning around £39mln worth of the online retailer's shares, Frasers now has a 7.8% holding in the group, just a week after it increased its stake from 5% to 6.7%.
Boohoo hasn’t had an easy ride since Covid and in 2023 it has had to deal with Revolution Beauty’s boardroom battle, being one of London’s most shorted stocks and consumers switching from online shopping back to the high street.
The Sports Direct owner believes “Boohoo is an attractive proposition…with its laser focus on young female consumers” and hopes the stakebuilding can lead to a collaboration with its own brands like Misguided and I Saw It First.
Shares in Boohoo are down a third since it reached highs of almost 60p in April and have dropped close to 40% in the last twelve months.
Online electrical and fashion retailers have caught the eye of Mike Ashley’s group over the past year as it has built significant holdings in numerous industry players including Curry’s, AO World and Asos.
Frasers Group jumped by over 1.5% on Monday, having opened at a little under 800p.