Mike Ashley has tightened his grip on Burberry after upping his stake in the luxury brand, putting him on course to become the group's biggest shareholder.
The billionaire's Frasers Group now owns 7.4pc of the trench-coat maker, up from 6.3pc a fortnight ago, after using financial derivatives to add to his holding.
Frasers would become Burberry's largest investor if Mr Ashley converts the derivatives to shares, a move which would give the fashion tycoon immense power over the 170-year-old fashion brand.
Burberry is worth more than £3.8bn, giving Frasers' stake a value of about £280m. Mr Ashley's group originally acquired a 4.2pc stake in the company during the summer.
The fashion house has struggled after an ill-timed push upmarket coincided with a global slowdown in luxury spending.
It reported a £66m loss last year and announced plans to cut 1,700 jobs, although there have been signs of a recovery under Joshua Schulman, its new chief executive.
Sales returned to growth in the three months to June, helped by renewed demand for its signature trench coats.
Burberry is the latest investment for Frasers, which owns Sports Direct and Flannels, after it spent months snapping up stakes in some of the industry's biggest names.
Last week it unveiled an 8.8pc interest in American sportswear giant Under Armour, a major supplier to Sports Direct.
In August, it bought Harvey Nichols out of administration and has been locked in a bitter battle with the board of German fashion giant Hugo Boss over a potential takeover.
Frasers has amassed an interest of almost 50pc in the brand despite resistance from its leadership. The company also owns around 37pc of Mulberry, the British luxury handbag maker.
Its growing empire is part of a push by Michael Murray, Frasers' chief executive and Mr Ashley's son-in-law, to transform the business from a discount sportswear retailer into a major force in luxury fashion.
Last week, Frasers outlined plans to expand its Flannels department store chain across Europe and take the Harvey Nichols brand overseas.
Taking control of Burberry would give Mr Ashley ownership of one of Britain's most recognisable fashion brands.
Mr Ashley has a history of taking minority stakes in retailers before seeking greater influence over their operations.
Frasers has also built positions in Asos and Boohoo,
However, its investments have not always paid off. Frasers bought luxury retailer Matches in late 2023 but placed it into administration less than three months later.
Burberry declined to comment. Frasers was approached for comment.
