Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Frasers builds 5% stake in Asos to become fourth-largest investor

by October 24, 2022
October 24, 2022
Frasers builds 5% stake in Asos to become fourth-largest investor

Online fashion retailer Asos is poised to confirm that the billionaire retailer Mike Ashley has built up a stake of more than 5% in the company.

Asos’s statement to investors could come as soon as Monday morning, before the London Stock Exchange reopens after the weekend.

Ashley’s fashion and sportswear retailer Frasers Group informed Asos on Friday that it had become one of the company’s most significant shareholders. The move made Frasers the fourth largest shareholder in Asos. It was required to inform Asos once its stake in the company reached 5%.

Frasers first took a smaller stake in Asos earlier in the year, continuing the company’s record of building holdings in other retailers, making it one of the few businesses expanding on the high street. The increase in Frasers’ stake, first reported by the Telegraph, came after Asos reported slowing sales and a £32m pre-tax loss in the year to August.

Like many retailers, Asos has issued a profits warning as it struggles with rising energy and staffing costs, combined with the impact of a weak pound and shoppers reining in their spending amid the cost of living crisis.

Asos’s share price has plunged by more than 80% over the past year, and the retailer disclosed in recent days that it had agreed a £650m banking facility to give it “financial flexibility”.

The company said it would write off more than £100m of stock and cut its costs in response to tougher trading conditions.

Asos’s new chief executive said last week that the business had become too complex and had become “overstretched globally” as it attempted to attract shoppers outside the UK, in markets such as the US, France and Germany.

José Antonio Ramos Calamonte said it would work on buying its stock more frequently and closer to the time of sale, to make sure it had the right fashions to offer customers.

Frasers has continued to acquire other retail businesses in recent months: in July it snapped up the online fast fashion specialist I Saw It First, a month after buying the online fashion retailer Missguided out of administration for £20m in cash.

Ashley expanded his retail empire in 2018 with the purchase of the collapsed House of Fraser department store chain, and in recent years he has also invested heavily in the Flannels chain.

He stepped down from the board of Frasers Group earlier in October, after 40 years at the helm, when the company said he would not be standing for re-election as a director at the group’s annual meeting. However, he remains the company’s controlling shareholder, with a near-70% stake, and continues to act as an adviser to the board and senior management.

A Frasers spokesperson said only 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 declined to comment on Frasers’ increased stake.

Read more:
Frasers builds 5% stake in Asos to become fourth-largest investor

0
FacebookTwitterGoogle +Pinterest
previous post
How Can You Help Your Investments Weather the Storm
next post
Former BoE governor Lord King thinks austerity could be more difficult this time round

You may also like

HMRC issues winding up petition against PPE firm...

September 2, 2022

Millennial Homeownership Reaches 12-Year High Amid Rising Wages

May 30, 2024

Why High Pay Day matters

January 26, 2023

UK nightclubs face extinction as 10 venues close...

October 24, 2024

Sturgeon told: No euro, no membership

October 27, 2022

Oil, smoking and driverless cars: 21 laws unveiled...

November 7, 2023

Understanding the value of becoming a certified Blockchain...

May 27, 2025

NatWest ‘Tell Sid’ Sale Likely to be Postponed...

May 23, 2024

Easy Life band forced to rebrand following legal...

June 12, 2024

Seven days in office: What has PM Truss...

September 13, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • The Radiology Group Atlanta: Helping Small Hospitals Stay Open with Smart Imaging Support

      July 15, 2025
    • Senate GOP braces for test vote on Trump’s $9.4B clawback package

      July 15, 2025
    • Anthony Bernal: Who is Jill Biden’s top aide ordered to testify about alleged cover-up?

      July 15, 2025
    • Hegseth abruptly pulls Pentagon officials from ‘globalist’ Aspen conference

      July 15, 2025
    • Mike Waltz faces post-Signalgate ‘brutal’ grilling from Dems in UN ambassador hearing

      July 15, 2025
    • SCOOP: Fiscal hawks fire warning shot at Senate GOP for pushing changes to Trump’s $9.4B spending cuts bill

      July 15, 2025

    Categories

    • Business (8,484)
    • Investing (2,121)
    • Politics (16,045)
    • Stocks (3,209)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved