Frasers Group has formally appointed founder Mike Ashley as a consultant, as the retail empire goes on an acquisition spree.
Ashley, who stepped down as a director of the Sports Direct-owner last year when he promoted son-in-law Michael Murray as chief executive, will advise the company on supply chain and operations, according to The Sunday Times.
Although Ashley, who did not receive a salary when he was at the helm of the business, will not be paid for his consultancy services, the unconventional agreement is likely raise concerns that he is acting as a “shadow director”, according to the newspaper.
Frasers Group is understood to have taken legal advice to ensure it adheres to good governance practice with the consultancy arrangement.
READ MORE: Frasers Group: What does the retail giant own?
The billionaire, who owns 69% of the retail group, rejoins as the business goes on an acquisition spree.
Over the past fortnight it has taken a 19% stake in Ao.com, a 5% shareholding in Boohoo and 9% of Currys – with Frasers CEO Murray understood to have spoken to Currys CEO Alex Baldock about commercial opportunities such as opening Game concessions in its stores.
It has also built its stake in Asos to more than 10%.
The Sunday Times reported that Frasers, which also owns shopping centres in Luton and Dundee, is looking to snap up a selection of outlet centres.
Click here to sign up to Retail Gazette‘s free daily email newsletter
5 Comments. Leave new
very good all the companys I have had gear from ao and curry’s both good
It’s Amazing they’ve got money to spend buying stakes in businesses and retail parks etc but not to give there staff permanent part and full time contracts instead they keep giving out 0 hour contracts and buying other retails all in aid to raise Mike Ashley and his son in-laws wealth via stocks and shares
nepatism rules
Snoughts in troughs
Now they making 200 staff redundant due to financial issues. It doesn’t seem to be a case of they are able to invest so much