British businessman Mike Ashley has seen his Frasers Group launch a takeover bid for German fashion label Hugo Boss.
The retail conglomerate already holds a stake of just over 25% in the company, built gradually since 2020. On Wednesday, it confirmed it now intends to acquire the remaining shares for €1.98bn (£1.73bn).
Hugo Boss said it would “thoroughly examine the offer and issue a reasoned statement”.
Frasers Group, formerly known as Sports Direct, controls several high street and retail names including House of Fraser, Game, Jack Wills and Evans Cycles.
It is also the largest shareholder in Boohoo, although relations between the two firms have often been tense.
The company has a history of stepping in to acquire struggling retail brands, but its incremental expansion in a profitable business like Hugo Boss marks a different strategy.
Because its stake has now moved close to the 30% threshold under German law, it is required to make a full takeover offer.
Frasers has proposed €38 per share, slightly above Hugo Boss’s closing price of €36.5 on Wednesday, and said it expects the deal to complete before the end of the year, subject to regulatory approval.
Hugo Boss described the approach as an “unsolicited” offer that had “not been coordinated with the company”, adding that it would “inform its shareholders and the public about further developments and next steps”.
Frasers responded by highlighting its “a strong track record in making strategic investments”.
It added that it is “a long-term investor” in Hugo Boss and that it “remains supportive” of its chair and chief executive.
Tensions between Frasers and Boohoo have been more pronounced. Boohoo, which owns the Debenhams brand, had attempted to rebrand itself formally as Debenhams after acquiring the name out of administration, but Frasers used its voting power to block the move.
Boohoo chief executive Dan Finley said the company would “operate to all intents and purposes as Debenhams Group”.
“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 that he did not know why Frasers blocked the change.
Since becoming an investor in 2023, Frasers has repeatedly criticised Boohoo in open letters and public statements, with much of the scrutiny directed at co-founder Mahmud Kamani.
Mike Ashley, who founded Frasers when it was known as Sports Direct, remains the group’s largest shareholder, with his son-in-law serving as chief executive.
Over the years, he has attracted controversy, once describing unhappy investors as “cry babies”, facing criticism over working conditions at Sports Direct, and famously vomiting into a fireplace after drinking 12 pints during a pub business meeting.
He also owned Newcastle United for 14 years, a period during which he faced strong criticism from supporters over his management of the club and his decision to temporarily rename St James’ Park as Sports Direct Arena.
