Retail magnate Mike Ashley embarks on an advisory role with model train manufacturer Hornby, aiming to rejuvenate the brand and boost its financial performance amidst a tough market.
Retail magnate Mike Ashley has embarked on a new advisory role with model train manufacturer Hornby, following his Frasers Group’s acquisition of a stake in the company. Ashley, renowned for founding Frasers Group, will offer consultancy services aimed at bolstering Hornby’s capabilities in systems, operations, logistics, and strategic planning. This consultancy arrangement is seen as a strategic move to help Hornby confront a difficult financial period, highlighted by a recent report of a £5.1 million pre-tax loss.
Ashley’s involvement with Hornby was announced amidst the backdrop of Frasers Group increasing its stake in the model train maker, subsequently becoming its third-largest shareholder, trailing only Phoenix Asset Management and Artemis Investment Management. This move precipitated a positive response in the market, with Hornby’s share price climbing by 7% to 38p, thereby elevating the company’s market valuation to approximately £64 million.
The partnership between Mike Ashley and Hornby is anticipated to inject a fresh perspective into the company, which aims to revitalize its financial performance and regain its foothold in the competitive toy market. With Ashley’s proven track record in retail and Frasers Group now holding an 8.9% stake in Hornby, stakeholders are optimistic about the company’s future direction and potential resurgence under this new collaboration.
