Frasers ups Boohoo stake again with £11.5m investment

Mike Ashley's "strategic investment" in Boohoo has continued, with Frasers Group once again lifting its stake in the fast-fashion retailer on Friday.

In a regulatory filing, it was revealed that Frasers has bought a further 38m shares in Boohoo for approximately £11.5m, based on Thursday's closing price of 30p.

The purchase took Frasers' stake from 10.42% to 13.44%, now worth £51.1m.

Frasers, which is majority owned by Ashley and holds significant stakes in retailers such as Currys, Sports Direct and AO World, has steadily increased its investment in Boohoo in a series of transactions over the past few months, taking advantage of a depressed share price.

The online retailer has struggled with double-digit sales declines and shrinking margins, and in the most recent financial year reported a loss of £91m, compared with a profit of £8m previously.

The stock has fallen by around 50% after hitting a 52-week high of 60.94p in late March.

In June, Frasers said it was making a "strategic investment" in Boohoo, which it deemed an "attractive proposition to us with its laser focus on young female consumers".