Sports Direct increases holding in Debenhams

Mike Ashley’s Sports Direct has again upped its stake in department store chain Debenhams. A stock exchange announcement yesterday showed that Sports Direct has raised its interest in Debenhams from 19 per cent to 21 per cent, the latest in a series of increases.

Ashley’s intentions in boosting his firm’s holding have been the subject of speculation, although few have tipped the billionaire to attempt a full-blown takeover.

Sports Direct has in the past said it simply wants to be a “supportive stakeholder” in Debenhams, and to create value in the interests of shareholders of both firms.

The retailer began building its stake in Debenhams in 2014 and last made a raid on its shares in June.

Sports Direct has built its position through a combination of share options and contracts for differences.

Newcastle United owner Ashley has a history of building up positions in rival retailers, having previously bought stakes in JD Sports and privatelyowned House of Fraser.