Mike Ashley’s Frasers weighs move to oust Hugo Boss chief
Mike Ashley’s Frasers Group is weighing up a move to oust a boardroom chair at Hugo Boss as it laid out fresh plans to grow its stake in the German fashion house.
The retail group, which was founded by the British billionaire, told investors on Tuesday that it wants to control more than half of Hugo Boss. It already owns nearly 48 per cent of the group, making it its biggest shareholder.
Frasers Group’s update cast doubt on the position of Stephan Sturm as the chairman of Hugo Boss’s supervisory board, suggesting it could launch a coup against him.
The group said: “Frasers is currently reviewing whether it continues to support Mr. Stephan Sturm in his position as the Chairman of the Supervisory Board of Hugo Boss.”
A potential bid to replace Sturm would be the latest in Frasers’s long history of boardroom bust-ups. The group has garnered a reputation for taking stakes in rival companies and using these positions to make aggressive plays for change within the firm.
Sturm has been chair of Hugo Boss’s supervisory board since May last year. Michael Murray, chief executive of Frasers, holds a seat on the board.
Hugo Boss’s supervisory board sits above its managing board, scrutinising its work and appointing the members of this panel.
Frasers pushes into luxury fashion
Last month, Frasers upped its stake in the German fashion house to 47.9 per cent – a holding worth nearly €1.5bn.
Frasers had tabled a £1.7bn offer for the entire group, but this was slapped down as “inadequate” by Hugo Boss. The UK group instead appealed to investors, picking up about 17 per cent of Hugo Boss with its €38-per-share offer.
Frasers has reportedly been pushing to install Murray, who is Ashley’s son-in-law, as chief executive of Hugo Boss.
In 2024, Frasers built up stakes in luxury bagmaker Mulberry and online retailer Boohoo, but failed in its attempts to gain seats on the boards of both companies.
Earlier this year, Ashley launched a £166m takeover bid for Australian shoe company Accent and called for the removal of its chairman over his alleged “poor performance”.
The group’s pursuit of Hugo Boss comes as Ashley, who founded Sports Direct, seeks to push his retail empire upmarket.
Last month, Frasers bought struggling department store chain Harvey Nichols out of administration for about £40m.
The group, which also owns up-market brand Flannels, said its acquisition of Harvey Nichols will build on its “elevation strategy, strengthening its luxury positioning”.
Ashley founded Frasers Group in 1982. Its slate of brands includes Jack Wills, Evans Cycles, Lonsdale and Slazenger.