JD Sports has snapped up an eight per cent stake in footwear retailer Footasylum.

The retailer, which has a store in Gloucester, bought 8.7 million shares, worth around £2.5 million, as reported by The Times.

The news meant shares in Footasylum almost doubled in value, rising from 29p to 55.25p.

Footasylum, which has 70 UK stores including stores in Swindon and Bristol, was set up in 2005 by a co-founder of JD Sports. It targets younger, more fashion-conscious customers. JD Sports has over 2,400 stores.

JD Sports has said it is not planning a takeover of its smaller rival, but would be interested in buying more shares, right up to the 29.9 per cent threshold, at which it would be forced to make an offer to buy the entire business.

Shares in JD Sports rose 4.1 per cent yesterday.