Sports Direct founder Mike Ashley has sold £100m of shares in the retailer.
Ashley’s company Mash Holdings has sold 25 million shares, with the move confirmed by an official Stock Exchange announcement made on Tuesday afternoon.
Sports Direct International’s share price has dropped more than 30p to just under £4 as a result.
Independent retail analyst Nick Bubb said opinion was divided over whether the move will help improve liquidity in the stock or if it could spell “another collapse in the share price”.
“[Ashley] doesn’t really need the money and he still owns 65% of the company,” Bubb told Drapers. “I am not sure if it is to do with any other acquisitions Ashley might be thinking about making.”
Ashley had previously been linked to a possible purchase of department store group House of Fraser, although this has since been denied.