Mike Ashley's Frasers Group has announced plans to buy back £60m of its shares despite the company previously warning it would suffer a huge blow because of the coronavirus pandemic.
The group - which owns a range of businesses including Sports Direct, House of Fraser, Evans Cycles, and Jack Wills - said it plans to acquire 10m of its shares between now and July.
In a statement to shareholders, the company said: "The aggregate purchase price of all shares acquired under the programme will be no greater than £60,000,000. The maximum number of shares that may be purchased under the programme will be 10,000,000 ordinary shares.
"The purpose of the programme is to reduce the share capital of the company.
The company recently warned it would suffer a £200m hit after most of its stores were forced to close during the coronavirus pandemic. The figure was double its previous estimation.
At the time, it added that further restrictions are “almost certain”, believing a writedown against freehold values and other non-cash impairments will be required.
The company has also been critical of the Government’s response to extending the business rates holiday, complaining that the support on offer did not go far enough for big chain retailers.
Despite bemoaning the financial woes for the business, it has also made several unsuccessful attempts to buy up rivals who have struggled during the pandemic, including Arcadia, Debenhams and Peacocks.
Frasers reopened its estate on April 12 following the easing of lockdown restrictions for non-essential retailers. It did not give an update on current trading.
During the first lockdown in March 2020, Mr Ashley tried to claim that Sports Direct was an essential retailer and should remain open, but faced a severe backlash from unions and politicians – including the Prime Minister.
