Frasers Group, the retail giant behind Sports Direct and House of Fraser, has increased its stake in Hugo Boss to nearly 48%, just a month after its takeover approach was rejected by the German fashion brand's bosses.
Stake Increase and Takeover Bid
Last month, Frasers owned about 36% of Hugo Boss but moved to take full control. It offered around 1.98 billion euros (£1.73 billion) for the remaining shares, which would have meant paying about 38 euros per share. However, Hugo Boss's management and supervisory board deemed the deal “inadequate from a financial point of view” and advised shareholders not to accept it.
Speculation about a potential takeover has grown since Frasers first invested in 2020, and it has been steadily increasing its stake. Frasers' chief executive Michael Murray serves on Hugo Boss's supervisory board as a result of the investment.
Recent Acquisitions and Strategy
The move follows Frasers' acquisition of the historic department store chain Harvey Nichols, which had gone under auction after warning it might need to “cease trading” within a year without new investment. The rescue deal includes its six stores in Knightsbridge London, Manchester, Birmingham, Bristol, Leeds, and Edinburgh, plus its online business, product inventory, and about 1,000 workers.
This acquisition is part of Frasers' “elevation strategy” to boost its luxury market presence, building on growth from its Flannels brand. Frasers is owned by Mike Ashley, a billionaire businessman known for being the former owner of Newcastle United.
