Mike Ashley's Frasers Group has reduced its position in Burberry, despite its broader strategy of acquiring high-fashion brands. Recent filings indicate that Frasers' holding in the FTSE 100 fashion house has been slimmed down to six per cent.
This reduction follows an increase in its position to 7.4 per cent as recently as last week. The stake is held through put options, which grant Frasers the right to sell them at a fixed price. Burberry, valued at over £3.8bn, means Frasers Group's current holding is worth approximately £240m.
Frasers Group, which owns Sports Direct and Flannels, first acquired a 4.2 per cent stake in Burberry in July. This pursuit was part of Mike Ashley's efforts to elevate his fashion empire upmarket. The group has also been pursuing Hugo Boss, holding about 48 per cent of the German fashion house and expressing a desire for majority control.