Mike Ashley’s Frasers Group takes £100m stake in Hugo Boss

The group has snapped up 3.3 million shares in the German fashion brand, equivalent to a 4.7% stake in the business. Frasers has also taken a further 0.4% in options and contracts for difference.

In a statement to the London Stock Exchange after markets closed on Friday, Frasers said its maximum exposure to Hugo Boss as a result of the deals was €108m (£97m).

Frasers said it “intends to be a supportive stakeholder and create value” for both businesses.

It added that the investments “reflects Frasers Group’s growing relationship with Hugo Boss and belief in Hugo Boss’ long-term future”.

Frasers Group, which owns a number of retail businesses including Jack Wills, Game, Evans Cycles and Sofa.com, stocks Hugo Boss products through its Sports Direct, USC and House of Fraser stores and websites.

The acquisition of a stake in Hugo Boss marks the latest in a long line of investments Frasers has made in other businesses and brands.

Ashley has previously taken stakes in sportswear giant Adidas and Umbro owner Iconix, and has more recently taken a shareholding in upmarket fashion and accessories brand Mulberry.

The sportswear tycoon has been criticised for what some believe to be a scattergun approach to his investments.

His stake in Debenhams was left worthless after the department store chain tumbled into administration and fell into the hands of its lenders last year.

Frasers shareholders have also lost out in Ashley’s bets on Goals Soccer Centres and French Connection.

Ashley’s group, previously known as Sports Direct International, is in the midst of an ‘elevation’ strategy to revamp its flagship locations and improve the customer experience.

Its main fascia, Sports Direct, is set to reopen all of its stores today following the coronavirus lockdown, while House of Fraser will start to welcome customers again later this month.