Sports Direct Founder Mike Ashley, who made his billions selling cut-price sportswear to a "scruffier and less athletic crowd," owns 51% of the upmarket chain Flannels, according to Mark Vandevelde of the FINANCIAL TIMES. Soon it will open in London, "across the road from its sister company Sports Direct on Oxford Street." It is "a bold step:" Sports Direct is paying £108M ($154.2M) -- equivalent to about 5% of its market capitalization -- "to buy a building that will house the 20,000 sq ft store, as well as the group's London offices." It provides further evidence that Ashley is "trying to move beyond the formula that propelled Sports Direct to become Britain's biggest sportswear retailer." Ashley's financial interests in "more upmarket British retailers have multiplied since he took control of Flannels" in '12. Two years later Sports Direct acquired an 11% stake "in House of Fraser." It also has options to buy 10.5% of the share capital of rival Debenhams. Sports Direct said that the stakes will help it "hopefully build a relationship and develop commercial partnerships," both with the companies themselves and with "key suppliers and brands" (FT, 4/17).
