Frasers Group doubles down on ambitions for majority ownership of Hugo Boss

Frasers Group has doubled down on its bid for majority control of Hugo Boss, saying that it is looking to "further increase" its current 47.89% stake in the German luxury fashion house. 

Frasers, which has recently snapped up department store Harvey Nichols, increased its stake in Hugo Boss in August, after further shareholder acceptance of its initial takeover offer from June.

Its current position makes Frasers Group Hugo Boss's single largest shareholder, although it did not automatically give Frasers majority ownership of Hugo Boss.

The group said it has an objective to take its stake above 50% of the overall share capital and voting rights of the business, which would tighten its control on how the brand is run. Frasers, which is majority-owned by billionaire Mike Ashley, said there is no certainty whether this objective will be achieved.

It also told shareholders that it is reviewing whether it supports the current Chair of Hugo Boss’s supervisory board, Stephan Sturm.

Frasers had previously said that it was looking to potentially install its own CEO, Michael Murray, to lead the German luxury brand's if the takeover was successful.

In its latest financial results from 4 August, Hugo Boss reported “tangible progress” for the second quarter of 2026, despite earnings before interest and tax (EBIT) falling 28% to €59 million (£50.5 million).

At the time, Hugo Boss CEO Daniel Grieder said the financial results showed that the strategy "was already translating into tangible benefits" and that the "results confirm that we are in control of what matters".

Background on the voluntary takeover offer 

Frasers launched its voluntary public takeover offer on 10 June for all Hugo Boss shares it did not already own. This followed six years in which Frasers had been building its position in Hugo Boss.

At launch, the bid valued the outstanding shares at approximately €1.98 billion and Hugo Boss as a whole at around €2.7 billion, bidding €38 per share. The group declared the price final on 25 June. 

In July, Frasers crossed Germany’s 30% mandatory-offer threshold after buying a further 2,549,900 shares in Hugo Boss.

The week after, on 27 July, the European Commission granted merger-control clearance, satisfying the offer’s only completion condition. The bid therefore became legally unconditional on 28 July.

Hugo Boss board maintained opposition

Hugo Boss’s Managing Board and Supervisory Board unanimously recommended that shareholders reject the bid in a reasoned statement issued on 25 June.

The board described the €38 consideration as financially "inadequate", arguing that it did not reflect the company’s standalone value or medium-to-long-term potential. Bank of America and Goldman Sachs provided external opinions supporting that assessment.

The price represented a 4.8% premium to Hugo Boss’s closing price of €36.26 on 9 June, the final trading day before Frasers announced its offer. It was also 4.3% above the company’s three-month volume-weighted average price before the announcement.

Hugo Boss CEO Daniel Grieder commented at the time: “Against this backdrop, we firmly believe that the offer price fails to capture the company’s intrinsic value and long-term potential.”

Frasers CEO Michael Murray, who joined the Hugo Boss Supervisory Board in May 2025, was excluded from the committee assessing the offer.

Frasers is, however, reportedly considering Murray as a future Hugo Boss CEO if its takeover succeeds.

Frasers acquisition of Harvey Nichols 

Frasers Hugo Boss deal comes hot on the heels of Frasers’ acquisition of historic department store chain Harvey Nichols on 13 August.

The group took control of six of Harvey Nichols' UK stores, its online business, inventory, franchise agreements and more than 1,000 employees.

The transaction also included the department store’s international franchise agreements, with stores continuing to operate under their existing licensing arrangements.

The deal followed Harvey Nichols' warning that it could collapse without a rescue the week before.

Its latest financial accounts for the year to 29 March 2025 showed group revenue fell £184.8 million from £204.8 million, while losses before tax widened to £49 million from £34 million. Its London store saw sales drop from £78 million to just under £69.5 million in the same period. It was the company’s fifth consecutive loss-making year.