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Ashley acquires Hugo Boss stake in move upmarket

Hugo Boss is the latest addition to an upmarket portfolio

Mike Ashley’s Frasers Group – the owner of Sports Direct and Jenners – has acquired a stake in fashion chain Hugo Boss.

The ‘strategic investment’ in the German company, announced last night after the market closed, is seen as part of a plan to take his retail empire upmarket. 

Frasers bought 3.3 million shares in the company, equivalent to a 4.7% stake, and a further 0.4% in options and contracts for difference taking the potential value of the transaction to £97 million.

Mr Ashley has taken stakes in other brands, such as Adidas and Umbro owner Iconix, in order to gain better access to products for his shops.

In February the company bought a 12.5% stake in Mulberry, the accessories chain.

In November last year the board dropped the budget-linked Sports Direct name for the holding company in favour of Frasers after adding the department stores to its portfolio in 2018. The deal included the Scottish Jenners stores.

Frasers Group said the investment in Hugo Boss reflected its “growing relationship” with the company. 

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