Frasers Group has increased its interest in Burberry to 7.42 per cent, just weeks after snapping up Harvey Nichols and tightening its grip on Hugo Boss.
The company has raised its position in the British fashion house from 6.32 per cent at the end of September, having previously held an interest equivalent to 4.16 per cent.
According to a regulatory filing published on Monday, Frasers’ entire position is held through sold put options, rather than shares owned outright.
The instruments represent 27 million potential voting rights and expire between October 2026 and September 2027.
The latest increase comes just a week after Frasers unveiled its new luxury division, bringing together Flannels, Harvey Nichols and US luxury retailer The Webster under a single operation.
Chief executive Michael Murray outlined plans to grow Flannels across Europe and expand Harvey Nichols internationally as the retail giant looks to establish a much bigger presence in the luxury market.
The group has spent recent months assembling an increasingly influential portfolio of fashion investments.
In August, it acquired Harvey Nichols out of administration for £43.3m, adding one of Britain’s best-known luxury department stores to its business.
However, the takeover has already brought changes to the retailer’s estate, with its Birmingham store set to close in January and its Leeds and Bristol branches being converted into Flannels.
Frasers has also been building its position in German fashion house Hugo Boss, where its holding has reached almost 48 per cent following a takeover offer earlier this year.
Murray was subsequently appointed chairman of Hugo Boss’s supervisory board, giving Frasers a more direct role in the company’s direction.
The retailer has made clear that it wants to increase its interest in the German business to more than 50 per cent.
Burberry is working to rebuild sales under chief executive Joshua Schulman, who has sought to bring the business back to its roots in outerwear and recognisable British heritage products.
The strategy has begun to produce results. Burberry reported a five per cent increase in comparable store sales in its first quarter to 27 June, with retail revenue rising to £455m.
Unlike Frasers’ position in Hugo Boss, the Burberry holding currently consists entirely of financial instruments, with no direct voting rights attached to shares.
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