Mike Ashley’s Frasers Group Makes £1.73bn Bid For Hugo Boss
British retail giant Frasers Group has made a takeover offer for German fashion company Hugo Boss, in a move that could significantly expand its influence in the global fashion industry.
Frasers, which already owns more than a quarter of Hugo Boss, announced on Wednesday that it wants to acquire the remaining shares in the company through a deal valued at approximately €1.98 billion (£1.73 billion).
Responding to the offer, Hugo Boss said it would “thoroughly examine the offer and issue a reasoned statement.”
The proposed acquisition marks a major step in Frasers’ long-term investment strategy. The company, formerly known as Sports Direct, has gradually increased its stake in Hugo Boss since 2020 and is now approaching the 30% ownership threshold that would require it under German law to make an offer for the entire business.
The bid values Hugo Boss at €38 per share, above the €36.50 share price at which the company closed trading on Wednesday.
Frasers stated that it expects the transaction to be completed before the end of the year, subject to regulatory approvals and other legal requirements.
Hugo Boss described the proposal as an “unsolicited” offer that “has not been coordinated with the company,” adding that it would “inform its shareholders and the public about further developments and next steps.”
Frasers said it has “a strong track record in making strategic investments” and described itself as “a long-term investor” in Hugo Boss. The company also noted that it “remains supportive” of the fashion brand’s chair and chief executive.
A Different Approach For Frasers
Frasers has become known for acquiring struggling retail brands, often purchasing businesses out of administration. However, its steady accumulation of shares in Hugo Boss represents a different strategy, focusing on a profitable and established international fashion brand.
The retail group owns a wide portfolio of brands, including House of Fraser, Game, Jack Wills, and Evans Cycles.
Ongoing Tensions With Boohoo
While Frasers has maintained a supportive relationship with Hugo Boss, its dealings with online fashion retailer Boohoo have been far more contentious.
Boohoo acquired the Debenhams brand after Frasers chose not to pursue a purchase of the department store chain. Last year, Boohoo attempted to formally change its corporate name to Debenhams, but Frasers used its voting rights as the company’s largest shareholder to block the move.
Speaking earlier this week, Boohoo Chief Executive Dan Finley said the business would “operate to all intents and purposes as Debenhams Group.”
“It’s just the formal change to the name that’s listed at Companies House… required a special resolution that didn’t pass,” he said, adding that he did not know why Frasers opposed the proposal.
Since investing in Boohoo in 2023, Frasers has repeatedly criticised the company through public statements and open letters, with much of the criticism directed at Boohoo co-founder Mahmud Kamani.
Mike Ashley’s Influence
Frasers was founded by British businessman Mike Ashley, who remains the company’s largest shareholder, while his son-in-law currently serves as chief executive.
Ashley has long been one of the most controversial figures in British business. Over the years, he has attracted headlines for both his outspoken comments and management style.
He once referred to dissatisfied investors as “cry babies”, faced criticism over working conditions at Sports Direct facilities, and famously vomited into a fireplace after reportedly drinking 12 pints during a business meeting at a pub.
Ashley also owned English football club Newcastle United for 14 years, a tenure marked by frequent clashes with supporters, including his decision to temporarily rename the club’s stadium Sports Direct Arena.
If completed, the Hugo Boss acquisition would represent one of Frasers’ largest and most significant deals to date, strengthening its position in the global retail and luxury fashion market.
