Frasers Group has increased its stake in Asos for the second time this week as speculation over a takeover of the embattled online fashion retailer continues.
The group, owned by Mike Ashley, has now acquired 9.9% of shares in the company, up from 7.4% earlier this week.
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As a result, Ashley’s actions have raised fresh questions over Asos, as its value dropped from over £7 billion just over two years ago to around £400 million now, as shares hit a 12-month low.
This comes as Frasers Group has a history of acquiring struggling businesses, which included online retailers Studio, Missguided and ISawItFirst.com.
Over the weekend, it was reported Asos was approached by Alibaba-backed Turkish fashion business Trendyol in December, about a possible £1 billion offer.
However, recently it emerged suppliers for Asos, which acquired Topshop following its collapse, have begun cutting ties after credit insurers withdrew cover amid concerns over its falling profits.
Asos has been demoted from the FTSE 250 index as shares hit a 12-month low.
