Mike Ashley-owned retailer Sports Direct has raised its bet on Debenhams again, taking its interest in the department store retailer to more than 11%.

Mike Ashley-owned retailer Sports Direct has raised its bet on Debenhams

Mike Ashley-owned retailer Sports Direct has raised its bet on Debenhams

Sports Direct’s stake in Debenhams is now more than 11%

The acquisitive retailer, which snapped up Agent Provocateur earlier this month, has increased its position in Debenhams through a “contracts for differences” arrangement, The Times reported.

Sports Direct has a put-option deal with Goldman Sachs relating to a 10.5% position in Debenhams, which was extended for a second year last May. 

The put option is a bet that Debenhams’ share price will rally, giving the owner the right to sell the shares at a prearranged fixed price.

If the share price were to rise above the agreed exercise price then Sports Direct would receive the premium, resulting in a likely profit for the billionaire tycoon.

Sports Direct already has a 9% stake in rival department store House of Fraser, and bagged an 11% stake in the beleaguered French Connection last month.