House of Fraser owner Mike Ashley's company owed €76m by close family member

In June, Frasers bought struggling online brand Missguided and increased its stake in Hugo Boss.

Mike Ashley’s company is owed £64m (€76m) by one of the UK retail entrepreneur’s close family members, according to its delayed financial results.

The loan is interest free and not repayable to Mash Holdings until the end of 2030, accounts lodged at Britain’s Companies House said. They didn’t reveal the recipient of the loan.

Ashley is a former squash coach who turned one shop into Britain’s biggest sportswear chain. He is a controversial figure who has previously been accused of flouting corporate governance norms, including for involving family members in the running of Frasers Group, his retail empire which owns the House of Fraser, Flannels and Sports Direct chains among other holdings.

The documents for Mash, which has a significant holding in Frasers, confirm Ashley’s son-in-law Michael Murray, who is now chief executive of Frasers, received nearly £21m (€25m) for previous consultancy work he did before assuming the top role at the retail group.

When Murray first started working for Frasers, Ashley was criticised for failing to disclose his family link to his future son-in-law.

Frasers shares were largely flat in early trading on Thursday. They had soared as much as 25% last month when Frasers said it expected to build on strong profits in the coming months despite the cost-of-living crisis. The company forecast profit of at least £450m (€532m) in the financial year to April, building on record profits of £345m (€408m) last year.

In June, Frasers bought struggling online brand Missguided and increased its stake in Hugo Boss.

The Mash Holdings accounts reveal the company charged Ashley £1.3m (€1.5m) for use of its private jet and helicopter during the period ending April 25 last year, and £600,000 (€708,513) rent for use of its properties in London and Miami.

The documents also highlight the financial performance of Premier League team Newcastle United in its final year before being sold to a consortium led by Saudi Arabia’s PIF. 

In a season badly hit by Covid-19, revenue was at £146m (€172m), against £144m (€170m) the year earlier, with match-day income down 98.9% as spectators were forced to stay away from matches due to pandemic restrictions.

The statement says a criminal HM Revenue and Customs investigation into the alleged underpayment of tax and national insurance at the football club was downgraded to a civil probe in May 2021.

• Bloomberg