LONDON – Hugo Boss said it is “thoroughly examining” an unsolicited takeover offer from Mike Ashley‘s Frasers Group for the stake in the German menswear giant that it does not already own.
Hugo Boss made clear in a statement that Frasers’ cash offer came as a surprise on Wednesday, June 10, after the close of trading. The German company added it would respond with a “reasoned statement, acting in the best interests of the company, its shareholders, employees and customers.”
Frasers, one of Boss’ largest shareholders with a 26 percent stake, is offering 38 euros per share for approximately 74 percent of the company. The offer represents a premium of 4 percent to Boss’ last closing share price of 36.46 euros, and amounts to nearly 2 billion euros.
Frasers said the financing was fully in place.
The British company, owner of retailers ranging from Sports Direct and Flannels to Gieves & Hawkes on Savile Row, described Hugo Boss as a “key brand partner for Frasers, and one of the top five brands across the Frasers Group.”
Frasers added that it was supportive of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive officer, “in pursuit of their sustainable growth strategy whilst continuing to build brand equity. Frasers’ board of directors believes that increasing Frasers’ investment in Hugo Boss will create value for Frasers’ shareholders.”
The company noted that Michael Murray, CEO of Frasers, is a member of the supervisory board of Hugo Boss, and did not participate in the board’s discussion of, or decision to make, the takeover offer.
Citi described Frasers’ offer as “modest,” and believes it will “limit stake building while fueling speculation that a higher offer may eventually materialize.”
It also said Hugo Boss shares have lagged in 2025, and are down 19 percent versus the luxury sector’s 4 percent rise. In the year-to-date, however, the shares are flat compared with the wider sector’s decline of 19 percent.
The bank estimated that Frasers currently accounts for 5-10 percent of Hugo Boss wholesale sales, or 2-4 percent of total brand sales.
Frasers’ offers are rarely welcome, at least in the U.K.
Ashley is known here as the Grim Reaper of the high street due to his habit of buying stakes in distressed companies, or those that sell through his retail chains.
Two years ago he attempted to take over Mulberry, but the board, and majority owner Christina Ong, fought him off.
In late 2023, Frasers purchased the luxury multibrand retailer Matches at a knockdown price of 52 million pounds, and within months had placed it into administration.
At the time, Frasers said the company was too expensive to bankroll against a backdrop of dwindling demand for luxury goods and a persistent cost-of-living crisis.
After placing the company into administration, Frasers repurchased the intellectual property and non-tangibles belonging to Matches. The move rocked the industry here, forcing designers to scramble for money and find new investors and sales channels.
Last year, the Matches IP was sold to the founders of members shopping app Mile. Matches will become part of a new group called Hulcan, formed by the Mile cofounders Joe Wilkinson and Mario Maher.
Hugo Boss is the second German company that Frasers has pursued this year. In March, Frasers took a 5.8 percent stake in the German sportswear brand Puma and became its second largest stakeholder after Anta Sports, China’s biggest sportswear brand which owns Fila.
