Frasers increases Burberry stake again as it expands luxury interests

LONDON, Oct 12 (Reuters) - British retailer Frasers has further increased its stake in luxury brand Burberry to 7.42%, having already raised its holding at the end of September, as the Mike Ashley-controlled company broadens its interests in the luxury sector.

The owner of Sports Direct is known for aggressively buying up retailers, and in August bought luxury department store Harvey Nichols out of administration, as well as pursuing a takeover of Hugo Boss.

Frasers had on September 30 disclosed a stake of 6.32% in Burberry, up from 4.16% previously. Its stake is held entirely via sold put options with expiries of October 2026, March 2027, and September 2027.

Burberry declined to comment, and Frasers did not immediately respond to a request for comment on the increased stake. Frasers last week set out a luxury strategy, saying it sees opportunities to expand its department store chain Flannels in Europe and Harvey Nichols globally.

(Reporting by Helen ReidEditing by Tomasz Janowski)