Sports Direct International has increased its exposure to department stores after boss Mike Ashley increased its stake to 12.7%.
Sports Direct, in which Ashley owns a 57.7% stake, bought a 4.6% stake in Debenhams in January, only to sell it four days later when it entered a ‘put’ option over 6.6%. Now it has don it again, buying and then selling a second 4.6% stake in Debenhams in return for a second ‘put’ option on 6.1%.
If shares in Debenhams rise, the retailer could make a good profit. If the price falls, the most it could lose is £64m.
Since January 13, when Sports Direct made its first investment, Debenhams shares have fallen 22.5%.
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