Mike Ashley gets on board Hornby train with consultancy deal

Mike Ashley has agreed to act as a consultant to model train manufacturer Hornby as his retail empire continues to develop a stake in the company.

Ashley’s Frasers Group last month increased its stake in Hornby to 8.9 per cent as part of a wide range of strategic investments that saw Frasers take positions in the likes of Boohoo, Currys and Asos.

Hornby told shareholders on Wednesday that Ashley had entered into a consultancy agreement with the company through his company Mash.

It says Ashley, who founded his empire in 1982 before stepping down and handing the reins to his son-in-law Michael Murray in 2022, would “support” chief executive Olly Raeburn and the business as a whole.

Ashley will focus on Hornby’s “systems, operations, logistics and, where appropriate, wider strategic matters”, the London-listed retailer said.

The deal, for which Ashley will not be paid, is aimed at adding “value for the respective shareholders of Hornby and Fraser Group”.

Horny, whose roots date back to the early 1900s, has seen its shares rise almost 140 per cent since the start of 2024, driven by Frasers’ growing interest in the group.

Hornby shares were up 2.4 percent at 36.5p in early trading.

Frasers finance director Chris Wootton said in February that Hornby had a portfolio of “unique heritage brands” and that “we look forward to exploring opportunities to further leverage our scale in logistics and retail distribution”.

This wave of strategic investments also saw it take stakes in London-listed white goods company AO World and high-end fashion brand Hugo Boss. Earlier this month, Frasers bought cycling brand Wiggle.

But Frasers has failed to revive the fortunes of Matches Fashion, which was placed into administration less than three months after its acquisition.

Frasers Shares were up 0.4 percent at 788.5p in early trading.