The founder of Sports Direct has bought an 11 per cent stake in House of Fraser, a source close to the deal said, only days after China's Sanpower Group agreed to buy a 89 per cent in the department store.
Mike Ashley, who holds 62 per cent of sport goods retailer Sports Direct, the firm he founded in 1982, has long been linked to attempts to acquire House of Fraser and finally bought the stake this week from Scottish tycoon Tom Hunter, the source said.
Media reports have said the deal was worth £50 million.
It was unclear however whether Ashley, who also owns Premier League football club Newcastle United, had bought the stake personally or done so via Sports Direct, but analysts suggest it is likely to be the latter.
On Friday a source said China's Sanpower Group had agreed to buy an 89 per cent stake in the 160-year-old House of Fraser in a deal valuing the department store at over £450 million, including debt.
House of Fraser trades from 61 stores in Britain and Ireland and has annual sales of about £1.2 billion.
Sports Direct, which has over 600 sports stores in Europe, including 400 in the UK, grew rapidly during the economic downturn on demand for its value offers, supported by a mixture of acquisitions, expanding online sales and the demise of rivals like JJB Sports.
Sports Direct and House of Fraser declined to comment.
