Frasers Group can't get enough of Boohoo, raising its stake yet again

Frasers Group has once upped its stake in the fast fashion retailer Boohoo, this time taking its ownership to 17.2 %.

Documents filed with the London Stock Exchange revealed that the owner of Sports Direct and Flannels increased its shareholding in Boohoo to 17.2% from 16.5%.

In October, Frasers leapfrogged the Co-founder of Boohoo – Mahmud Kamani – to become the largest single shareholder in the company.

The group first snapped up a stake in Boohoo in June, initially taking a 5% holding, saying at the time that it saw "potential synergies" between Boohoo and two of its brands, I Saw It First and Missguided, and hoped it would lead to collaborations. Frasers has since sold Missguided to Chinese giant Shein.

The stake-building in Boohoo comes as the online retailer has suffered hefty share price falls – down 43% over the past six months – as sales have suffered amid the cost-of-living crisis and a turnaround plan.

Boohoo revealed that underlying earnings may now fall in the year to 28 February, lowering its guidance to between £58 million and £70 million. It is cutting prices to attract cash-strapped consumers during the cost-of-living crisis while axing costs under an overhaul.

Boohoo is just one of a raft of rival retailers that Frasers has been snapping up stakes in as it expands its empire. It revealed in June that it had built up an 8.9% stake in electrical retailer Currys, adding to its holding in online electrical firm AO World, while recently increasing its holding in ASOS to over 20%.