Mike Ashley’s Frasers Group builds 5% stake in struggling Asos

Mike Ashley’s Frasers Group has built up a stake of more than 5% in Asos, making it the fourth-largest shareholder in the online fashion giant.

The group informed Asos on Friday that it had become a significant shareholder in the business.

The news came days after the retailer announced a cost-cutting plan, alongside a pre-tax loss of £32 million, as it continues to grapple with rising energy and staffing costs, amid the ongoing cost-of-living crisis.

Asos said it would write off over £100m of stock as its new CEO José Antonio Ramos Calamonte looks to turn the company’s fortunes around.

Over the past year, Asos’s share price has plummeted more than 80%, having issued a profit warning and failing to maintain the positive gains it made during the pandemic.

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According to a report from The Telegraph, Frasers Group aims to use its stake in the online retailer to build a partnership, which may involve “selling each others’ brands or sharing distribution.”

A Frasers spokeswoman said that the group “makes strategic investments in the ordinary course of its business, to develop relationships and partnerships with other retailers, suppliers and brands”.

Asos has declined to comment on Frasers’ increased stake.

Frasers Group is rapidly building its portfolio, having acquired Missguided for £20 million this year and recently snapping up the likes of Studio and ISawItFirst.

The group is also looking to acquire Australian flash sales site MySale.



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