Frasers Group has raised its stake in online retailer THG to 10.9 per cent, up from 6.1 per cent.

The retail giant is a collection of some of the world’s most iconic sporting, luxury and retail brands and was founded by businessman Mike Ashley.

Regulatory documents filed show Frasers Group now has a 151.9m shares in THG, which currently has a share price of 31.6p.

The deal strengthens the long association between Frasers Group and Manchester-headquartered THG.

When THG raised £95.4m to facilitate the recent demerger of merger of THG Ingenuity, it included £10m from Ashley’s Frasers Group.

Last year THG agreed to sell its portfolio of luxury goods websites to Frasers Group, including premium fashion retailer Coggles.

Last week Frasers Group also increased its stake in online electrical retailer AO World to 25 per cent.

Frasers Group  is also the biggest shareholder in Boohoo Group and has been locked in a high profile spat with the fashion retailer over the direction of the business.

Last week THG announced a £90m equity raise as part of a debt refinancing package – with CEO and founder Matt Moulding committing up to £60m of his own money.

Moulding’s money is in the form of a  loan which converts into shares later in the year, given him 25 per cent of the shareholding.

The planned refinancing package will reduce the overall debt and extend the term to 2029 as the firm looks to expand its consumer markets.

The move follows the demerger of THG Ingenuity from the profitable THG Beauty and THG Nutrition and the  company’s return to the FTSE 250 Index.

Moulding has agreed to contribute up to £60m to the equity fundraise, which follows the £50m he’s already invested in THG shares since its IPO.

THG’s existing £760m banking facilities weren’t due to expire until the end of 2026 but the move provides additional  certainty.