Mike Ashley tightens grip on Hugo Boss with stake near 48%
British retail billionaire Mike Ashley's Frasers Group has raised its stake in German fashion house Hugo Boss to nearly 48%, continuing a summer buying spree that also included the acquisition of Harvey Nichols.
British retail billionaire Mike Ashley is continuing to expand his footprint in the luxury fashion sector. His company, Frasers Group, has increased its shareholding in German fashion house Hugo Boss to 48%, though this still falls short of full control.
The increased stake follows 17.6% of Hugo Boss shareholders accepting Frasers' offer of €38 per share. In June, Ashley had made a takeover bid worth nearly €2bn (£1.73bn) for the whole company, but Hugo Boss's board rejected it as inadequate and urged shareholders not to accept it, noting the offer represented only a 4% premium on the share price at the time.
Analyst Axel Rudolph of trading platform IG described the move as another major step towards Ashley gaining control of Hugo Boss, saying it puts Frasers firmly in the driving seat to increase its influence. Hugo Boss chair Stephan Sturm said the company appreciated Frasers' long-term commitment and looked forward to a constructive relationship with its now-largest shareholder.
Frasers has stocked Hugo Boss products in its stores for years and has taken an increasingly activist role at the company since first buying a stake in June 2020, pushing for change as Hugo Boss grappled with weak women's clothing sales and softer demand in China.
Wider expansion
Last week Ashley bought Harvey Nichols, a department store chain with 13 stores and 1,200 employees, out of administration for a reported £40m after it warned it could run out of funding. Ashley also owns the Flannels chain and a significant stake in British handbag maker Mulberry, and this summer launched a bid for Australian footwear retailer Accent Group.
Should Ashley eventually secure full control of Hugo Boss, it would join a portfolio that already includes the Frasers department stores, Sports Direct and bicycle retailer Evans Cycles. Ashley holds a 73% stake in Frasers Group, which he built from a single sports shop in Maidenhead opened in 1982 with £10,000 from his parents. His personal wealth rose by £317m last year to £3.44bn, according to the Sunday Times rich list.
