Sports Direct-owner builds stake in Asos

The owner of Sports Direct has become the fourth largest shareholder in Asos, the struggling online fashion retailer.

Frasers Group, which is owned by billionaire Mike Ashley, now owns 5% of Asos after building up shares in the company which owns the Topshop brand.

Frasers has bought up a glut of UK retailers over the last few years spanning sportswear, fashion, furniture and bikes.

Asos recently reported a loss as the cost of living hit shoppers' budgets.

The company warned that it expects people to cut back even further in the months ahead.

The buy-up of Asos shares means that Frasers Group is now the fourth largest shareholder in the business.

Frasers Group said it was part of the "ordinary course of business to develop relationships and partnerships with other retailers, suppliers and brands".

Mr Ashley, who founded the sportswear retailer Sports Direct, has in the past gone on to take over businesses he invests in including House of Fraser.

This year he stepped down as chief executive of the company, handing over the role to his son-in-law, Michael Murray, though Mr Ashley remains as the controlling shareholder in the group.

The increase in Frasers' shareholding in Asos - first reported by the Sunday Telegraph - will not give it any control over the online fashion business or a position on its board.

Along with House of Fraser and Sports Direct, the group also owns Flannels, Game, Jack Wills, Evans Cycles and Sofa.com.

The group has also built significant shareholdings in the fashion brands Hugo Boss and Mulberry.