Mike Ashley, the retail billionaire who built a fortune from a single sports shop in Maidenhead, is now trying to buy one of Germany's most iconic fashion brands. His company, Frasers Group, has made a takeover offer worth about £1.73bn (€1.98bn) for Hugo Boss, the luxury fashion house known for its sharp suits and upmarket sportswear. Frasers already owns 26% of Hugo Boss, having gradually built up the stake since 2020, and is now seeking full control. The offer of €38 per share is a small premium over the €36.44 at which the shares closed, and the deal is expected to go to a shareholder vote later this year.
Frasers Group, formerly called Sports Direct, is a sprawling retail empire that also owns House of Fraser (now rebranded as Frasers department stores), Flannels, Evans Cycles, Game, and Jack Wills. It is also the largest shareholder in Boohoo, though relations with that company have been frosty. Mike Ashley remains the biggest shareholder in Frasers with a 73% stake, while his son-in-law Michael Murray runs the company day-to-day. Ashley left school at 16 to become a professional squash player, but an injury ended that career and he opened his first sports shop in 1982 with £10,000 from his parents. He is now worth £3.44bn, according to the Sunday Times Rich List.
“Explains Mike Ashley's Frasers Group £1.73bn bid for Hugo Boss and what it means for UK retail.”
The bid for Hugo Boss marks a shift in strategy for Frasers, which has long been known for buying up struggling or bankrupt British retail names. Hugo Boss, founded in 1924 and listed on the Frankfurt stock exchange, is a profitable, premium global brand. Frasers has approached this acquisition differently: instead of swooping in when the company was in trouble, it has steadily increased its stake from under 10% in 2020 to more than 25% today. Under German law, any shareholder holding more than 30% of a company must make a formal offer for the whole business. Frasers is now close to that threshold, and the current bid may have been prompted by that rule.
The deal would give Frasers control of a brand that is one of its top five partners. Michael Murray already sits on Hugo Boss's supervisory board, though Frasers said he did not take part in the decision to make the offer. Hugo Boss has described the bid as "unsolicited" and said it will "thoroughly examine the offer" before issuing a formal response.
For UK readers, this takeover matters because it shows how Mike Ashley's retail empire is pushing further into luxury and premium fashion, moving beyond the discount sportswear image of Sports Direct. If the deal goes through, Hugo Boss products could become more widely available in Frasers-owned stores like Flannels and House of Fraser, potentially changing how the brand is sold in Britain. It also raises questions about the future of other investments held by Frasers, particularly Boohoo, where Ashley has used his shareholding to block a company name change to Debenhams. The deepening relationship with Hugo Boss may signal that Frasers is focusing on higher-end retail, a strategy that could reshape the UK high street.
Q: Why does Frasers want to buy Hugo Boss? Frasers sees Hugo Boss as a "key brand partner" and one of its top five brands. The acquisition would give it full control of a profitable luxury label, allowing it to integrate Hugo Boss more closely into its own retail network and potentially boost margins. It also reflects a broader strategy of moving upmarket from its Sport Direct roots.
Q: How much is Frasers offering and will shareholders accept? Frasers has offered €38 per share, valuing the company at around €1.98bn (£1.73bn). This is slightly above the closing price of €36.44, but some analysts may consider the premium too low. The offer will need approval from Hugo Boss shareholders, and the company board has yet to give its recommendation.
Q: What other brands does Frasers own? Frasers Group owns Sports Direct, Flannels, House of Fraser (now trading as Frasers), Evans Cycles, Game, Jack Wills, and is the largest shareholder in Boohoo. It also has stakes in other fashion and sportswear brands.
What happens next? Hugo Boss's supervisory board will review the offer and issue a statement to shareholders. If it recommends acceptance, a shareholder vote will follow. The deal also requires regulatory approvals from competition authorities. Frasers expects to complete the takeover by the end of 2025, assuming it clears all hurdles. If the bid fails, Frasers could continue to build its stake or walk away, but given its long-term investment approach, it is likely to remain a significant presence at Hugo Boss.