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Business

Frasers Group increases Hugo Boss stake to 15.2 percent

By Huw Hughes

20 Jan 2021

Mike Ashley’s Frasers Group has upped its stake in German label Hugo Boss in its latest move to reposition itself in a more upmarket segment.

The group announced Wednesday that it’s increased its stake in the label to 15.2 percent through stocks and derivatives, up from the 5.1 percent stake it acquired back in June 2020.

Frasers Group, which owns brands Sports Direct, Flannels, House of Fraser and Jack Wills, said that taking into account the premium it will receive under the put options, its maximum aggregate exposure in connection with its acquired interests in Hugo Boss is approximately 275 million euros or 245 million pounds.

“This investment reflects Frasers Group's growing relationship with Hugo Boss and belief in Hugo Boss's long-term future,” the British group said in a statement. “Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group's and Hugo Boss' shareholders.”

It is the latest move in an increasing effort by Frasers Group to reposition itself as a more high-end business.

The company last year bought a 36.8 percent stake in British luxury label Mulberry.

The group, formerly known as Sports Direct, said at the time that a “key strategic priority for Frasers Group is the elevation of our retail proposition and building stronger relationships with premium third-party brands”.

Chief Mike Ashley has previously said he wants Frasers to become “the Harrods of the high street”.

Photo credit: Boss, Facebook