Frasers Group’s debt pile has climbed above £1.2bn as the Sports Direct parent company continues an aggressive acquisition drive across luxury and international retail.
Frasers Group has rapidly expanded its portfolio and investments over the past year, snapping up businesses, property and stakes in some of fashion’s biggest names as it pushes ahead with its elevation strategy.
However, the spending spree has come at a cost, with Frasers’ total net debt rising from £941m to £1.26bn in the year to 26 April 2026.
Excluding borrowings linked to its financial services securitisation facility, net debt jumped from £847.5m to £1.17bn. Frasers said the increase reflected capital expenditure, strategic investments and acquisitions, including further investment in Hugo Boss and Australian footwear group Accent.
The group has continued to strike deals since the end of its financial year.
Last month it acquired luxury department store Harvey Nichols out of administration for around £43m, taking control of its six UK stores, ecommerce operations and international franchise agreements.
Frasers has warned that the 195-year-old retailer will need significant restructuring as it looks to return the loss-making business to sustainable growth.
The acquisition forms part of Frasers’ wider effort to build a more powerful position in premium and luxury retail alongside businesses including Flannels.
It has also dramatically increased its influence at Hugo Boss.
Frasers launched a takeover bid for the German fashion group earlier this summer and, despite failing to secure outright control, has since increased its direct holding to 47.89 per cent, making it by far the fashion brand’s largest shareholder.
The retailer said earlier this month that it intends to increase its stake beyond 50 per cent, potentially giving it majority ownership of Hugo Boss.
The dealmaking comes as Frasers’ underlying retail operations face a more challenging backdrop.
Adjusted pre-tax profit slipped four per cent to £538m in its latest financial year, while the group declined to provide profit guidance for 2027 because of uncertainty surrounding its takeover activity.
Revenue increased 8.7 per cent to £5.33bn, helped by international acquisitions, although sales across its core UK Sports division fell 4.7 per cent and Premium Lifestyle revenue dropped 6.9 per cent.
Frasers’ rising borrowings have prompted questions over how far the group can continue its acquisition-heavy strategy as it attempts to turn around businesses and increase its exposure to luxury fashion.
The company’s interest bill is also growing. Net interest on bank loans and overdrafts increased from £81m to £118.5m during its latest financial year, which Frasers attributed largely to greater use of its borrowing facilities following a refinancing in July 2025.
Founder Mike Ashley remains Frasers’ dominant shareholder, despite stepping down as chief executive in 2022 and later leaving the board.
His son-in-law Michael Murray now runs the business as chief executive and has spearheaded its push to move the former Sports Direct International group further upmarket.
Frasers maintains that Ashley has no day-to-day involvement or responsibility for the group’s strategic direction, although management can seek his expertise in areas including warehousing, logistics and supplier relationships.
The scale of Frasers’ recent buying spree means attention will now turn to whether Murray can successfully integrate and improve its expanding collection of businesses while keeping the group’s growing debt burden under control.
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