Controversial retail boss Mike Ashley in talks to buy Dundee Overgate

Mike Ashley's Frasers Group is in advanced talks to buy Dundee's main shopping centre.

By Amie Flett

February 5 2023, 3:15pm

Mike Ashley's company Frasers Group bought the Overgate Shopping Centre in Dundee this year. Image: PA/DC Thomson

Business tycoon Mike Ashley is currently in talks to buy the Overgate centre in Dundee.

Mr Ashley’s Frasers Group is in advanced talks to buy the city’s main shopping centre for £30 million.

It comes amid a £100m spending spree from Mr Ashley on shopping centres, which also includes a potential £70m deal on The Mall in Luton.

Sports Direct tycoon Mike Ashley. Image: PA.

If a deal was secured over the Dundee shopping centre, it would lead to a massive financial blow for Legal and General, who bought the Overgate from Land Securities for £125m in 2014.

Mr Ashley, who also owns Sports Direct, is said to currently be negotiating a hard bargain over the centre but sources have told The Times that a deal is not certain.

The move comes as UK retail chains struggle to compete with online shopping and the cost of living crisis.

In 2020, the Overgate suffered a huge loss when retail giant Debenhams fell into administration, causing the closure of its two storey store in the Dundee centre.

Who is Mike Ashley?

Mr Ashley, the former owner of Newcastle United football club, is one of the most controversial business figures in Britain.

He was hauled before the Business, Innovation and Skills Committee in June 2016 to answer questions from MPs about working conditions – including claims he paid workers less than the minimum wage – within the Sports Direct warehouses.

Sports Direct in Dundee’s Overgate. Image: Mhairi Edwards/DC Thomson.

He has grown his influence on the High Street by acquiring several brands and has stakes in the likes of Blacks, JD Sports, French Connection, USC and Flannels.

In 2020, he took over 169-year-old department store chain House of Fraser in a £90m deal hours after it collapsed into administration.

The group was renamed Frasers group and was taken over by Mr Ashley’s son-in-law, Michael Murray, last year and has stakes in Hugo Boss, Asos and N Brown.

Mike Ashley is one of the most controversial business figures in Britain. Image: Joe Giddens/PA.

The retail company are now hunting for acquisitions following a strong recovery from the pandemic.

Sports Direct and USC currently operate stores in the Overgate.

Overgate Centre Manager, Malcolm Angus, said: “At this time we cannot comment on an on-going proposed acquisition which has not yet completed or been fully agreed by our client.”

Mike Ashley has been approached for comment.