Sports Direct increases stake in Debenhams to 11.2 percent

Sports Direct has purchased an additional 4.6 percent stake in department store group

Debenhams, spending approximately 33 million pounds on 56 million shares.

The sportswear retailer now holds a 11.2 percent stake in Debenhams. Earlier this year Sports Directs purchased a 4.6 percent stake in Debenhams, which the retailer then sold at a profit a few says later, entering a put option which meant Sports Direct would be required to purchase shares equal to a 6.6 percent stake at a predetermined price and date.

The move comes a week after Sports Direct's owner, billionaire Mike Ashley, made a 43 million pound bet on struggling supermarket chain Tesco's.

In a statement published Thursday evening, Sports Direct added that they look “forward to building this relationship,” with Debenhams. The sporting goods retailer has been rolling out concession stands in selected department stores over the past few months, and recently opened its third and fourth concessions in stores in Guilford and Bristol last week.