Fraser’s Group, the retail giant controlled by Mike Ashley, and the discounter B&M are to be relegated from the UK’s top flight share index.
FTSE Russell, which operates the FTSE 100 and FTSE 250, confirmed on Wednesday evening that its latest quarterly review would see Sports Direct-led Frasers drop down to the lower tier for the first time in eight years.
It has been in the FTSE 100 since 2022 but its shares have been losing ground for months amid a feud with the online fashion firm Boohoo, in which Frasers has a significant stake, that has centred on its leadership.
Money latest: Taxman issues clarification on selling items online
Also facing the drop, FTSE Russell said, were B&M and the housebuilder Vistry – the latter a combination of Bovis, Linden and Countrywide.
The three firms replacing them in the FTSE 100 were Games Workshop, St James’s Place and Alliance Witan.
The moves, which take effect on 23 December, are determined by the companies’ market value as of the close of business.
Brian Thompson: Top healthcare boss murdered by gunman in face mask outside New York hotel
Parcel delivery giant Yodel hit by festive capacity crisis
Two-child benefit cap to be scrapped in Scotland under SNP’s budget plans
Frasers shares are 18% down over the year to date, according to LSEG data, also suffering amid struggles for luxury goods to which Frasers has been increasingly aspiring to.
Its value currently stands just shy of £3.4bn.
Be the first to get Breaking News
Install the Sky News app for free
Read more from Sky News:
Burberry launches High Court action against B&M
First rail companies to be nationalised are revealed
The market town named the happiest place to live
Mr Ashley’s MASH Holdings has almost three quarters of the shares in his possession though Frasers has been run by Michael Murray since May 2022.
He is the tycoon’s son-in-law.
Frasers is due to update on its performance on Thursday through the publication of half-year results.
B&M’s problems have been more recent – suffering falls in its share price amid revelations of rising costs and weaker profits.
