Sports Direct founder Mike Ashley has signalled that his penchant for snapping up stakes in rival retailers through Sports Direct may have run its course.
"Sports Direct, going forward will do less strategic stakes," Ashley told The Times in an interview.
Ashley is famed for his controversial dealings in the City and for his fractious relationship with analysts.
The sports retailer's stake in rival JJB Sports is under investigation by competition regulator the Office of Fair Trading.
Ashley said: "When we take a strategic stake it doesn't take away our focus. But if you get press speculation, investors calling and everything else, you do wonder if that strategic stake – even if it proved successful – was [successful] in comparison to all of the noise around it. How do you factor that in when you are a public company?"
Ashley hopes that by taking a u-turn on his strategic stakebuilding plans, he will be able to focus on Sports Direct's trading performance.
Sports Direct also has shares in Blacks Leisure and JD Sports Fashion.
Yesterday, Sports Direct revealed underlying pre-tax profits were up 3 per cent to£51.8 million in the six months to October 26.
No comments yet