Sports Direct has acquired a further 4.6% stake in Debenhams, the UK's second-biggest department store company, in a deal which strengthens ties between the retailers.
Debenhams and Sports Direct, controlled by Mike Ashley who also owns Newcastle United, began working together earlier this year with the department store trialling Sports Direct concessions in its stores.
The sporting goods chain has since January been tied to a put option which could lead it to buying a 6.62% stake in Debenhams.
It said in a statement yesterday that it had bought a further 4.6% stake for about £33m, bringing its total beneficial interest in Debenhams to 11.22%.
"As previously announced, Sports Direct is already working together with Debenhams and looks forward to building this relationship," Sports Direct said in its statement.
The company has gained a reputation for buying and selling stakes in different companies, and in some cases taking bets on their share prices rising by selling put options.
In September, Sports Direct entered into a put option agreement on a small stake in troubled grocer Tesco.
Separately yesterday, it was announced that Ashley had raised his stake in Scottish football club Rangers.
Days before it announced the put option deal concerning Debenhams shares in January, Sports Direct had bought a 4.6% stake in the department store chain which it then swifly sold for a profit of about £4.6m.
Sports Direct's maximum exposure under the Debenhams put option amounts to about £64m.
