Sports Direct has more than doubled its stake in French Connection, with Mike Ashley's retail giant now nearing a level of ownership where it must make a formal takeover bid.
The Shirebrook-headquartered company now owns 27 per cent of the high street fashion chain, having upped its holding from 11 per cent.
Sports Direct initially took a stake in February 2017 and has now bought out OTK and Gatemore Capital Management.
Under UK takeover rules, a shareholder owning 30 or more of a company's shares must launch a takeover bid.
While Ashley's plans for the business remain unclear, it follows a trend of the Newcastle United owner taking stakes in fellow retailers including Game Digital, Findel and Debenhams.
Founded in 1972 by Stephen Marks, French Connection has stores across Britain.
Earlier this month, Sports Direct revealed that it had been hit by a £160m drop in underlying pre-tax profits during what was a "transitional year" for the industry giant, having come up against currency headwinds and strategic challenges.
However, a resilient Mike Ashley reaffirmed his belief that the retailer is on course to become the "Selfridges of sport" after it continued its roll-out of new generation stores.