Frasers Group, the retail giant behind Sports Direct and House of Fraser, has increased its shareholding in Hugo Boss to almost 48 per cent, accelerating its push into the high-end luxury market.
The move comes a month after the German fashion brand rejected a buyout approach from Mike Ashley’s business.
Having previously held a stake of around 36 per cent, Frasers launched an attempt to gain full control of the company last month.
It offered roughly €1.98 billion (£1.73 billion) for the remainder of the business, which equalled about €38 per share for investors.
However, the management and supervisory board at Hugo Boss stated that the deal was "inadequate from a financial point of view" and advised shareholders not to accept it.
Market speculation over a potential takeover has grown since Frasers first invested in 2020, as the firm has steadily built up its holding.
Frasers’ chief executive Michael Murray is a member of Hugo Boss’s supervisory board as a result.
The move to buy more shares in Hugo Boss comes hot on the heels of Frasers’ acquisition of historic department store chain Harvey Nichols.
Harvey Nichols had gone under auction after warning in its latest accounts that it would need to “cease trading” within a year if it failed to secure new investment.
The rescue deal includes its six stores in Knightsbridge London, Manchester, Birmingham, Bristol, Leeds and Edinburgh, as well as its online business, product inventory, and around 1,000 workers.
The acquisition by Frasers was part of the group’s so-called “elevation strategy” aimed at increasing its presence in the luxury market, building on growth of its Flannels brand.
Bosses at Sports Direct owner Frasers said they will now oversee a turnaround at the historic chain, which could see it become a “smaller business” in the short-term.
Frasers will now oversee a “significant restructuring” as it integrates Harvey Nichols into its wider group, with plans to review the retailer’s shop portfolio, organisation structure, operating model and costs.
Frasers is owned by Mike Ashley, a billionaire British businessman who is widely known for being the former owner of Newcastle United.
