Retail billionaire Mike Ashley has expanded his influence over the luxury sector, with his Frasers Group now holding a 48% stake in Hugo Boss. This move follows the company’s recent acquisition of the Harvey Nichols department store chain for a reported £40 million, a purchase made after the retailer entered administration due to funding shortages. Harvey Nichols currently operates 13 stores and employs 1,200 staff.
The increased stake in the German fashion house comes after 17.6% of shareholders accepted Frasers’ offer of €38 per share. This bid, which represented only a 4% premium at the time it was proposed, was previously dismissed by the Hugo Boss board as “inadequate.” Despite the board’s earlier opposition to the nearly €2 billion takeover attempt in June, Hugo Boss chair Stephan Sturm noted on Tuesday that the company appreciates the “long-term commitment” and intends to maintain a constructive relationship with its largest shareholder.
Market analysts have viewed the development as a significant power play. Axel Rudolph of IG described the move as “another major step towards gaining control” of the brand, placing Frasers “firmly in the driving seat” as it seeks to exert greater influence. Retail analyst Nick Bubb remarked that the bid was “surprisingly successful” given the “apparently token nature” of the €38 offer.
Frasers Group has maintained an activist stance toward Hugo Boss since 2020, pushing for operational changes to address sluggish demand in China and weaknesses in women’s clothing sales. Should Ashley eventually secure full control, Hugo Boss would join a diverse portfolio that already includes Sports Direct, Evans Cycles, and the Frasers department store chain.
Ashley, who stepped down from the Frasers board in 2022, retains a 73% stake in the retail empire he founded in 1982 with a £10,000 loan from his parents. According to the Sunday Times rich list, his personal wealth grew by £317 million last year, reaching £3.44 billion. Beyond his European interests, Ashley has also pursued an acquisition bid for the Australian footwear company Accent Group this summer. The report also notes that that bid reflected only a 4% premium to Hugo Boss’s shares when it was tabled. The report also notes that frasers, which has stocked Hugo Boss products in its stores for some years, has taken an increasingly activist role since it first took a stake in the German group in June 2020. The report also notes that which has 13 stores and 1,200 employees, said it could run out of money if it did not find new funding, he bought Harvey Nichols out of administration last week after the upmarket chain. The report also notes that ashley, who is known for his controversial business tactics, retains a 73% stake in Frasers, which he built from a single sports store in Maidenhead, Berkshire, opened in 1982 with £10,000 from his parents.
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