Asos investor becomes major shareholder in Boohoo

Fast fashion retailer Boohoo reported a jump in sales in the first half of the year, but profits were down on last year’s pandemic highs, as increased operational costs slightly offset business gains. the Manchester-headquartered group
The retailer's market share in both the UK and the US has doubled.
// The US investment giant T Rowe Price becomes the third-largest shareholder in Boohoo Group
// The group has acquired a 10% stake in the fast-fashion giant

The US investment giant T. Rowe Price has taken a 10 per cent stake in the online fashion retailer Boohoo to become one of its largest shareholders.

The firm already has a major stake of more than 11 per cent in Asos which acquired the Topshop, Topman, Miss Selfridge brands at the start of the year.

According to Boohoo’s website, T. Rowe Price’s latest investment makes it the third largest shareholder in the Manchester-headquartered group behind Jupiter Fund Management in second and founder and co chief executive Mahmud Abdullah Kamani in first place.

READ MORE: Boohoo’s John Lyttle defends decision not to step down despite ongoing controversies

The stake purchase is a vote of confidence in Boohoo that has seen its shares proving very volatile in the past year.

As of July this year, a total of 24.8 per cent of shares in Boohoo are not in public hands.

The investment from T. Rowe Price comes after Boohoo announced plans to create 5,000 jobs as part of a £500 million investment plan in the UK to mark its 15th anniversary.

The jobs will be created over the next five years, and Boohoo said the investment will help the firm continue its “Incredible growth”.

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