// Mike Ashley’s Frasers Group buys 5.1% stake in German fashion chain Hugo Boss
// Forms part of Ashley’s ambitions to create the “Harrods of the high street”
// Hugo Boss is a supplier for House of Fraser and Flannels, both owned by Frasers Group
Mike Ashley’s Frasers Group has taken a 5.1 per cent stake in Hugo Boss through stocks and derivatives, as part of his ongoing ambition to create the “Harrods of the high street”.
On Friday, Frasers Group said the investment reflected its growing relationship with Hugo Boss and belief in its long-term future.
“Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group’s and Hugo Boss’ shareholders,” it said.
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Frasers Group confirmed that purchased 120,000 shares of Hugo Boss common stock, 140,000 shares of common stock via contracts for difference, and 3.29 million shares of common stock via the sale of put options.
After taking into account the premium it would receive under the put options, Frasers Group said its maximum aggregate exposure in connection with its acquired interests in Hugo Boss is about £97 million.
Ashley has previously stated his desire to use his brands under Frasers Group to create the “Harrods of the high street”, or the “Selfridges of sport”, and his acquisitions and investments in other businesses in recent years forms part of that plan.
The plan also consists of rolling out the new Frasers concept, a luxury offshoot of House of Fraser, which Frasers Group acquired in August 2018 in a £90 million pre-pack administration deal.
Earlier this year that Frasers Group said it had signed a 65,000sq ft space for a brand new Frasers store within Meadowhall shopping centre in Sheffield, replacing the two-storey House of Fraser site.
The House of Fraser flagship in Glasgow operates under the Frasers name, but plans are in place to redevelop it into the new flagship site of the upmarket fascia.
Belfast, Liverpool and Wolverhampton have also been confirmed as sites for new Frasers stores.
Meanwhile, Hugo Boss is a main supplier for House of Fraser, along with stablemate Flannels.
Earlier this year, Frasers Group snapped up a 12.5 per cent stake in luxury accessories retailer Mulberry.
Frasers Group also acquired Jack Wills last year, and also operates Evans Cycles and the flagship chain Sports Direct.
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