Frasers Group has increased its stake in Hugo Boss to more than 50 per cent, giving the Mike Ashley-controlled retailer majority ownership of the German fashion brand.
Frasers acquired a further 198,666 Hugo Boss shares for around €7.6m (£6.6m), taking its holding to approximately 34.5 million shares, or 50.08 per cent. The purchase was funded from the group’s existing cash resources.
Crossing the 50 per cent threshold means Hugo Boss will become a subsidiary of Frasers, with its earnings, assets and liabilities expected to be consolidated into Frasers’ accounts.
The move marks the latest step in Frasers’ long-running pursuit of the fashion group. It first invested in Hugo Boss in 2020 and has steadily increased its holding, including through a failed €2bn takeover bid launched in June.
Frasers offered €38 per share for the shares it did not already own, but Hugo Boss’s management and supervisory boards rejected the proposal, describing it as financially inadequate.
Frasers has since continued to build its position, taking its stake to 47.89 per cent in August before crossing the majority threshold this month.
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In September, Hugo Boss chairman Stephan Sturm left the brand following “constructive discussions” amid the recent changes in the company.
Frasers CEO Michael Murray was appointed chairman of Hugo Boss’s supervisory board that same month, replacing Sturm.
This latest investment forms part of a broader push further into premium and luxury fashion, beyond its traditional Sports Direct-led retail portfolio.
The group has expanded its luxury exposure through businesses including Flannels and Harvey Nichols, while also building stakes in brands including Burberry and Under Armour.
Frasers said increasing its Hugo Boss holding beyond 50 per cent was in the best interests of its investors.
Hugo Boss, meanwhile, said it had taken note of the latest increase in Frasers’ stake and that crossing the threshold would not have any major implications for the business.
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