Newcastle United owner Mike Ashley’s Frasers Group has upped its stake in luxury fashion chain Hugo Boss.
The group, which also owns the likes of House of Fraser, Sports Direct, and Flannels amongst others, initially bought around 3.5 million shares in the firm last June, a stake it increased a month later.
The retail empire has now increased its shares in Hugo Boss to more than 15% after snapping up shares through stocks and derivatives.
It means Frasers Group now owns 3.6 million of common stock, representing 5.1% of Hugo Boss’ total share capital, plus 3.3 million shares via contracts for difference, which represents 4.8%, and 3.7 million shares via the sale of put options, amounting to 5.3% of the retailer’s share capital, resulting in the 15.2% total ownership.
Frasers Group first took on the shares last year as a strategic investment and says this new purchase represents its confidence in the brand’s future.
In a short stock market announcement the company said: “This investment reflects Frasers Group’s growing relationship with Hugo Boss and belief in Hugo Boss’s long-term future.
“Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group’s and Hugo Boss’ shareholders.”
At the start of the year the group added Middlesbrough luxury fashion firm Psyche to its portfolio. Owner Steve Cochrane, who will stay on with the business after the takeover, said the deal would secure the future of the store, its online operations and its 58 workers by becoming part of the large retail group.
Last December Frasers Group issued a profit warning after scrapping its guidance of a 20% to 30% increase in profits, saying lockdown restrictions are expected to impact the business.
