Ashley’s French Connection bid

SPORTS Direct has increased its stake in fashion retailer French Connection from 11pc to 27pc.

The sportswear group run by Mike Ashley snapped up the shares after two activist investors – Gatemore Capital Management and OTK – sold their stakes.

Gatemore had called for a breakup of French Connection, taking aim at under-fire chairman and chief executive Stephen Marks, saying he should relinquish his double role. OTK backed a boardroom shake-up and the acceleration of store closures.

French Connection said in March that pre-tax losses widened from £3.5m last year to £5.3m, while revenue fell 6.7pc to £153.2m. Marks, who launched the business in 1972, still has a 42pc stake.