Fraser’s Group, the retail giant controlled by Mike Ashley, and discounter B&M are to be relegated from the UK’s blue chip share index.
FTSE Russell, which operates the FTSE 100 and FTSE 250 indices, confirmed on Wednesday evening that its latest quarterly review would see the Sports Direct-led Frasers drop to the bottom tier for the first time in eight years.
The company has been part of the FTSE 100 since 2022, but its shares have been losing ground for months due to a row with online fashion company Boohoo, in which Frasers has a significant stake, and which has focused on his leadership.
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According to FTSE Russell, B&M and housebuilder Vistry – the latter a combination of Bovis, Linden and Countrywide – are also facing the decline.
The three companies that replaced them in the FTSE 100 were Games Workshop, St James’s Place and Alliance Witan.
These measures, which will take effect on December 23, are determined by the stock market value of companies at the close of business.
Michael Murray, Mr Ashley’s son-in-law, has run Frasers for two and a half years.
Frasers shares are down 18% since the start of the year, according to LSEG data, also suffering from the backdrop of the luxury goods struggle to which Frasers increasingly aspires.
Its value currently stands at just under £3.4 billion.
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Mr Ashley’s MASH Holdings owns almost three-quarters of the shares, although Frasers has been run by Michael Murray since May 2022.
He’s the tycoon’s son-in-law.
Frasers is due to provide an update on its performance on Thursday with the publication of its half-year results.
B&M’s problems are more recent: its share price fell following revelations of rising costs and falling profits.