Frasers Group has tightened its grip on Hugo Boss after increasing its stake in the company to almost 48 per cent, bringing Mike Ashley’s retail empire closer to taking control of the business.
The Sports Direct and Flannels owner now holds 47.89 per cent of Hugo Boss’s share capital and voting rights after shareholders tendered more than 12.1m shares into its takeover offer.
The shares accepted under the deal represent 17.62 per cent of Hugo Boss, with Frasers now holding a total position of more than 33m shares in the group.
Frasers launched its near £1.7bn takeover bid for Hugo Boss in June, offering investors €38 per share for the stock it did not already own.
However, the brand’s management and supervisory boards opposed the offer, arguing that it undervalued the company and urging shareholders to reject the approach.
The additional acceptance period for the deal ended on 13 August, leaving Frasers just short of securing majority control.
Hugo Boss supervisory board chairman Stephan Sturm said the business appreciated Frasers’ “continued long-term commitment” and looked forward to maintaining a constructive relationship with its largest shareholder.
The development further strengthens Frasers’ influence over Hugo Boss, which it first invested in back in 2020 as part of its wider push into premium and luxury fashion.
It comes just days after the retail group snapped up Harvey Nichols out of administration in a deal reported to be worth around £40m, adding the luxury department store to a portfolio that already includes Flannels and The Webster.
Frasers has also built investments across other high-profile fashion businesses, including Mulberry and Burberry, as it continues to expand its presence at the premium end of the market.
The latest increase in its Hugo Boss holding leaves the group with significant influence over one of Europe’s biggest premium fashion brands, despite its takeover offer falling short of securing outright control.
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