Frasers Falls as Mike Ashley Prepares to Step Down From Board

By Geoffrey Smith -- Shares in Frasers Group (LON:FRAS) slipped on Tuesday after the retail empire of Mike Ashley said he will step down from the board next month.

The group said Ashley will not stand for re-election at this year's annual general meeting on October 19th. He will remain available to the board in an advisory capacity. The move completes a process that began with Ashley handing the chief executive role to his son-in-law Michael Murray earlier this year.

Frasers' stock slipped 2.3% by 04:15 ET (08:15 GMT), underperforming a FTSE 100 that edged up by 0.1% as the U.K. market reopened after the holiday for Queen Elizabeth II's funeral.

The shares have now lost all of the gains they made since July when the group announced surprisingly large profits for the last fiscal year and raised its guidance for the current one.

Ashley, who made his fortune with the Sports Direct chain before branching out into more premium names such as House of Fraser, will inject 100 million pounds ($115 million) of funding into the group as he leaves. This will run alongside and on the same commercial terms as the company's existing unsecured borrowing facilities that were announced in December last year.

The money will go to fund the group's Elevate strategy, a broad, multi-year move upmarket that is expected to require 1 billion pounds of investment.

Ashley and Murray have used the relatively strong cash flows of Sports Direct to make a series of opportunistic acquisitions as the pandemic wiped out some of its weaker rivals. Its latest target is Australian-based e-commerce specialist MySale, which rejected a buyout offer from Frasers last week.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: