// Frasers Group has upped its stake in Hugo Boss
// The retailer values its holding in Hugo Boss at £770 million
Mike Ashley’s Frasers Group has upped its stake in luxury fashion brand Hugo Boss.
The Sports Direct-owner now holds 3.4 million shares of common stock, which represent 4.9% of Hugo Boss’s share capital, and 18.3 million shares of common stock via the sale of put options, representing a further 26% stake.
Frasers Group values its total stake in Hugo Boss, including the put options, at approximately £770m.
“This investment reflects Frasers Group’s belief in the Hugo Boss brand, strategy and management team. Frasers Group continues to intend to be a supportive stakeholder and create value in the interests of both Frasers Group’s and Hugo Boss’ shareholders,” it said.
Frasers Group owns retailers including House of Fraser, Sports Direct, Flannels, Game, Jack Wills, Evans Cycles and Sofa.com. The retail group has been building its stake in Hugo Boss for the past two years. It first took a 5% stake in the premium fashion brand in 2020.
It also owns shares in British luxury brand Mulberry.
Frasers Group denied it had plans to take over Hugo Boss last year and said it intends to be a “supportive stakeholder and create value” for both businesses.
It said at the time that the investment “reflects Frasers Group’s growing relationship with Hugo Boss and belief in Hugo Boss’ long-term future”.
Last month Frasers Group grew its retail empire as it snapped fast fashion etailer Missguided out of administration for £20 million. It emerged last week that it hired Missguided founder Nitin Passi to lead the business.