Sports Direct owner Frasers Group has snapped up a stake in N Brown, the pureplay retailer behind brands such as Jacamo and JD Williams.
The purchase, disclosed in a filing to the City yesterday (October 11), means Frasers now holds a 4.54% stake in N Brown and makes the Sports Direct owner the sixth largest shareholder of the digital-only retailer.
In addition to Sports Direct, Frasers Group owns a string of other high-street brands including House of Fraser, Game, Jack Wills and Evans Cycles.
In a statement regarding the acquisition of shares, the retailer said in a statement: “We are always pleased to welcome new shareholders to the group as we continue to progress our digital transformation strategy to deliver long-term sustainable profitable growth.”
N Brown has refashioned itself into an online-led model in recent years but recently outlined a big fall in half year profits recently as it felt the squeeze from the cost-of-living crisis. Profits slid 74.6% to £7.2m and sales fell 4.6% to £331.5m.
In the update covering the six-month period to the end of August, N Brown chief executive Steve Johnson warned that sales were likely to keep falling over the next few months.
Frasers Group has developed a reputation for snapping up struggling retailers, with the latest being fashion player Missguided it snapped up out of administration for £20m.
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