Sports Direct boss Mike Ashley pays £4million for 10.7million shares in ailing fashion chain French Connection

MIKE Ashley may be eyeing a takeover of FRENCH CONNECTION after buying a big stake.

His SPORTS DIRECT firm took 11 per cent of the ailing fashion chain, making it the second biggest shareholder.

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Newcastle United owner Mr Ashley has a history of buying stakes in rivals, such as DEBENHAMS, JD SPORTS, HOUSE OF FRASER and online seller FINDEL.

Sports Direct’s 10.7million shares, acquired for about £4million, gives Mr Ashley, 52, power to disrupt any other potential takeover bids.

He has been criticised for “Victorian working practices” at Sports Direct.

But French Connection said: “We see this investment as a vote of confidence in the potential of our company.”

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Stephen Marks launched the business 44 years ago and still holds a 41 per cent stake.

The brand, big in the 1990s, has suffered in recent years amid intense competition.

It has been repeatedly linked with possible takeover bids.

A group of its investors, including GATEMORE CAPITAL MANAGEMENT, are pressing for a boardroom shake-up.

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Demands include Mr Marks give up his dual role as chairman and chief executive.

Liad Meidar, of Gatemore, welcomed Mr Ashley’s involvement, saying: “A retailer that understands the value of brands has taken a seat at the table.”

In September, French Connection recorded a half year pre-tax loss of £7.9million, with sales sliding 8.7 per cent to £69.2million.