Hugo Boss urges investors to reject Frasers Group bid

Hugo Boss chiefs have urged investors to reject an “inadequate” takeover approach from Mike Ashley’s Frasers Group.

The retail giant behind Sports Direct and House of Fraser owns about 25 per cent of Hugo Boss, and last month launched a move to take full control.

However, Hugo Boss’ management and supervisory board today (Thursday, July 9) “unanimously recommended shareholders do not accept” the £1.73 billion offer for the remainder of the business.

The German fashion firm said the deal would be “inadequate from a financial point of view”.

Daniel Grieder, chief executive, said: “Hugo Boss has a well-defined strategy, a strong financial profile and a compelling path to superior long-term value creation.

“We focus on further strengthening our brands, structurally improving profitability and accelerating cash generation over the coming years.

“The offer price fails to capture the company’s intrinsic value and long-term potential.”

The offer is expected to go to a shareholder vote.

The move comes after speculation Frasers could seek a takeover of the brand, having steadily built up its stake since first investing in Hugo Boss in 2020.

Frasers’ chief executive Michael Murray is a member of Hugo Boss’ supervisory board.

Frasers has adopted a strategy of building stakes in rival retailers in recent years, owning significant chunks of brands including Asos, Boohoo Group, Puma and AO World.

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