Frasers Group ups stake in Boohoo

The retail empire of billionaire Mike Ashley has increased its grip on troubled fast fashion giant Boohoo Group, upping its stake to 22% to become the largest single shareholder.

The move sees Frasers Group (LSE: FRAS), which owns Sports Direct and House of Fraser, boost its holding in the online fashion retailer by 0.6 percentage points. Frasers has aggressively targeted Boohoo over the last year as the fast fashion purveyor battles sliding sales, ballooning losses, and delayed financial reports.

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Boohoo has suffered falling revenue and widening losses as it fails to keep pace with shifting consumer trends. Its revenue dropped from £1.98bn to £1.76bn over the past financial year. Boohoo reported a pre-tax loss of £90.7m compared to a profit of £7.8m in the prior year and £92.2m in the period before that.

Boohoo shares were unchanged in morning trading while Frasers Group stock slipped 1.2%.