Mike Ashley's Frasers launches £1.73bn bid to take over Hugo Boss

Mike Ashley's Frasers Group has made a €1.98bn (£1.73bn) takeover offer for German fashion brand Hugo Boss, the retail empire announced on Wednesday. Frasers already owns just over a quarter of the company, having steadily built up its stake since 2020, and is now close to the 30% threshold under German law that compels it to bid for the whole firm. The unsolicited offer, valued at €38 a share, is higher than the €36.5 at which Hugo Boss shares closed on Wednesday. Hugo Boss said it would “thoroughly examine the offer and issue a reasoned statement”, adding the bid had “not been coordinated with the company” and that it would update shareholders on next steps. Frasers, formerly Sports Direct, described itself as “a long-term investor” in Hugo Boss and said it “remains supportive” of the brand’s chair and CEO, while pointing to its “strong track record in making strategic investments”. The approach marks a shift for the group, known for swooping on troubled retailers after they fall into administration, but has instead steadily increased ownership of profit-making Hugo Boss over several years. The deal is expected to complete by the end of 2025 if it clears all legal checks. Frasers, which owns House of Fraser, Game, Jack Wills, Evans Cycles and other brands, has built a reputation for aggressive retail interventions. It is also the largest shareholder in Boohoo, though relations have been frosty. Last year Frasers used its voting power to block Boohoo’s attempt to formally rename itself Debenhams. Boohoo’s chief executive Dan Finley told the BBC earlier this week the company would “operate to all intents and purposes as Debenhams Group”, adding he did not know why Frasers blocked the name change. Since first investing in Boohoo in 2023, Frasers has written several open letters criticising the firm, particularly co-founder Mahmud Kamani. Ashley, who remains Frasers’ largest shareholder, has a history of controversy, from calling unhappy investors “cry babies” to facing criticism over working conditions at Sports Direct factories. The fate of Hugo Boss now rests on whether the board recommends the offer and whether shareholders accept.