Frasers Group Expands Luxury Holdings with Hugo Boss Stake and Harvey Nichols Acquisition
Mike Ashley's retail conglomerate increases Hugo Boss shareholding to nearly 48% amidst strategic luxury market push.
Carla Rooney
Frasers Group has significantly increased its shareholding in Hugo Boss to nearly 48%.
This aggressive move follows Frasers Group's recent acquisition of the department store chain Harvey Nichols.
Harvey Nichols faced potential cessation of trading without new investment; the department stores could run out of money if new funding was not secured.
Frasers Group's 'elevation strategy' aims to increase its presence in the luxury market.
Inadequate from a financial point of view.
Hugo Boss's management and supervisory board, however, recommended shareholders reject the takeover offer, deeming the deal "inadequate from a financial point of view."
Mike Ashley retains a 73% stake in Frasers Group; he hoped to install Michael Murray, his son-in-law and Frasers boss, as chief executive of Hugo Boss.
Speculation suggests Frasers could seek to take over the brand entirely.
Ashley also launched a bid to acquire the Australian footwear business Accent Group earlier this summer.
Stephan Sturm stated, "We appreciate Frasers Group’s continued long-term commitment to Hugo Boss and look forward to maintaining a constructive relationship with them as our single largest shareholder."