Mike Ashley sells stake in MySale
Sports Direct has sold its 4.8 per cent stake in online firm MySale Group for approximately $950,000.
According to ThisIsMoney.co.uk, the move could mean that Sports Direct-owner Mike Ashley is raising money for further acquisitions of struggling retail businesses.
The MySale Group, which operates OzSale, NZSale and SingSale in the region, faced difficulties in Australia during the six months to December 31, 2018, due to the shift in how GST is collected on international purchases.
“Whilst performance during the first half of the year has been disappointing, we have taken immediate action to address the issues,” MySale chief executive Carl Jackson said.
“Our previous plan to streamline and automate the business have been accelerated and these actions are already delivering results. The changes to product strategy are materially underway and will be completed in the second half.
The retailer’s revenue had been impacted by a reduction in its online activities during FY19, leading to sales falling 17 per cent to $126 million, and online revenue down 13 per cent to $120 million.
It has also been floated that the sale was a result of an ongoing feud between Ashley and Topshop-owner Sir Philip Green, who is also a key shareholder in MySale, after claims that Green had manipulated the sale of music retailer HMV.