Mike Ashley's Frasers Group has made a €1.98bn (£1.73bn) takeover offer for German fashion brand Hugo Boss, pushing to buy the entire company after steadily building a stake of just over a quarter since 2020.
The unsolicited bid, which Hugo Boss said had “not been coordinated with the company”, values the label at €38 a share — above Wednesday's closing price of €36.50. The offer came as Frasers neared the 30% ownership threshold that under German law requires a full takeover bid.
“Frasers Group offers £1.73bn to buy Hugo Boss after building a 25% stake since 2020.”
Frasers, the retail empire that started as Sports Direct and now owns House of Fraser, Game, Jack Wills and Evans Cycles, described itself as a “long-term investor” in Hugo Boss and said it “remains supportive” of the brand's chair and chief executive. It added that it expected the deal to be completed by the end of this year, subject to legal checks.
Hugo Boss said it would “thoroughly examine the offer and issue a reasoned statement”, promising to inform shareholders and the public about further developments.
The move marks a shift in strategy for Frasers, which has built a reputation for swooping on retailers that have fallen into administration. Its gradual accumulation of shares in profit-making Hugo Boss over several years is a different approach.
Frasers is also the largest shareholder in Boohoo, the online fashion group that bought the Debenhams brand out of administration after Frasers decided against it. The relationship has been frosty. Last year, Boohoo tried to formally rename itself as Debenhams Group, but Frasers used its shareholding to block the name change. Dan Finley, Boohoo’s chief executive, told the BBC this week the company would “operate to all intents and purposes as Debenhams Group” despite the blocked resolution. “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 he did not know why Frasers blocked the change.
Frasers has written several open letters about Boohoo since first investing in 2023, with much of the criticism aimed at co-founder Mahmud Kamani. Mike Ashley, who founded Frasers as Sports Direct and remains its largest shareholder, has a history of controversial public statements and criticism over working conditions in his factories.
For now, all eyes are on Hugo Boss’s response — and whether the £1.73bn offer will succeed by the end of the year.