Key Takeaways
Frasers Group is exploring installing its chief executive, Michael Murray, as the next CEO of Hugo Boss, the Times reported Sunday, as the British retail group pushes ahead with a takeover that has already crossed Germany's mandatory bid threshold.
The move would place Murray, who is also Mike Ashley's son-in-law and a member of Hugo Boss's supervisory board since 2025, at the helm of the German fashion house. Murray did not participate in the board's discussion of Frasers's offer, the company has previously disclosed.
Frasers's stake in Hugo Boss now stands at 30.28%, after it purchased an additional 2.55 million shares — roughly 3.69% of the capital — following the exercise of put options by counterparties on July 17. Under German takeover law, crossing the 30% threshold triggers a mandatory public bid for all outstanding shares.
The group's offer of €38 per share, valuing the remaining 73.9% it does not own at about €1.97 billion, has been open since June 10 and runs through midnight Frankfurt time on July 27. Frasers confirmed on June 25 that the price was final and would not be increased.
Hugo Boss's management and supervisory boards unanimously recommended that shareholders reject the bid, calling it "financially inadequate" and arguing it fails to reflect the company's intrinsic value or medium-term earnings potential. Hugo Boss reported revenue of about €4.3 billion and earnings before interest, taxes, depreciation, and amortization of €781.5 million in its 2025 fiscal year.
The stock has traded in a narrow range between €37.50 and €38 in recent weeks, after briefly spiking 9% to €40.52 when the offer was first announced — a jump that signaled some market hope for a higher bid that never materialized. At Monday's closing price of €38.02, the offer carries effectively no premium.
Frasers, which grew out of Ashley's Sports Direct empire, began accumulating Hugo Boss shares in 2020 with a 5% stake. The relationship deepened over time, with Frasers describing Hugo Boss as "one of the top five brands" across its portfolio and "a key partner" sold through its premium retail chains.
Ashley's approach to Hugo Boss follows a pattern he has deployed across multiple retailers. At Mulberry, the British luxury handbag maker, Frasers made two offers in 2024 — both rejected — and remains the largest shareholder at about 37% without control. At Asos, the group built a 29.26% stake, deliberately staying below the 30% U.K. threshold that would require a full bid.
The billionaire's aggressive tactics have drawn scrutiny. In May, Ashley admitted to orchestrating the secret filming of a meeting between the then-chairman of rival JD Sports and the CEO of Footasylum in a Bury parking lot in 2021, an episode that triggered a U.K. antitrust investigation and nearly £5 million in fines.
Frasers's broader acquisition push extends beyond Hugo Boss. The group made a bid last month for Australia's Accent Group and has entered the auction process for Harvey Nichols, the luxury department store chain. Its international revenue surged 59.2% to £1.6 billion in the year through April, supported by acquisitions including South Africa's Holdsport and Norway's XXL, even as its core U.K. sports retail revenue declined 4.7% to £2.57 billion.
With the mandatory offer requirement now fulfilled, Frasers can continue buying Hugo Boss shares on the open market without launching a new bid — and without ever paying a control premium. The question is whether the board's resistance holds, or whether Murray's potential installation as CEO signals a deeper integration that could eventually force a deal on Frasers's terms.
This article is for informational purposes only and does not constitute investment advice.
