Ashley increases his stake in struggling Debenhams to 21pc

SPORTS DIRECT boss Mike Ashley has increased his stake in Debenhams to more than 20pc.

In a statement to the stock market, Debenhams said Mr Ashley now holds 21pc of shares, giving him more than 10pc of voting rights in the company.

Sports Direct’s interest in Debenhams was first revealed in early 2014 and he has been steadily increasing his stake this year.

The increase of its holdings in the struggling department store chain follows Mr Ashley’s decision to snap up a stake of more than 25pc in video game retailer Game Digital last month.

In July he also gained a 27pc share of fashion retailer French Connection after two activist investors who declared war on the company’s corporate governance sold their stakes.

Mr Ashley has also built up stakes in other retailers, including House of Fraser and Findel.

In June, Debenhams told investors that profits will be at the lower end of expectations if the retail market continues to be affected by volatility.