Frasers, the high street giant behind Sports Direct, Flannels, Game, Jack Wills and Evans Cycles, has taken a bigger share of Hugo Boss and online clothes store Asos.
The Derbyshire-based business, which until recently was run by Sports Direct founder Mike Ashley, has become the fourth biggest shareholder in Asos with a 5.1 per cent stake.
It has also had upped its investment in German fashion house Hugo Boss to 4.3 per cent, plus another type of share option which put its maximum exposure in the business at around £840 million.
In a market statement Frasers said: “Frasers Group has a long history (over twenty years) of making strategic investments to develop relationships and partnerships with other retailers, suppliers and brands, including by way of acquisitions of shares, options, contracts for difference and other financial instruments.
“The strategic investments Frasers Group makes offer new opportunities for the company, whilst also helping to support the long-term future of the existing retail businesses, and the many thousands of jobs they sustain.
“Frasers Group continues to see opportunities that strengthen Frasers Group's brand proposition and the recent acquisitions of Studio Retail Limited (with its significant knowledge and experience in consumer credit) and Missguided (with its focus on Womenswear and its digital platforms) are examples of its drive to expand and acquire businesses and brands that can strengthen Frasers Group, and the connection to our consumers.
“Frasers Group has extensive ambitions to grow the business inside and outside of the UK and is constantly exploring the potential for further expansion.
“Accordingly, Frasers Group's board of directors believe that the acquisition of direct and / or indirect strategic stakes within Hugo Boss, are in the ordinary course of business of the company.”
Back in May ex-Frasers CEO Mike Ashley handed over the reins of the business to son-in-law Michael Murray, who has lead Frasers’ grow strategy in its premium division.
Mr Ashley has now stepped back from the board but will continue to advise senior management as and when needed.
Danni Hewson, a financial analyst at online stockbroker AJ Bell, said: “Fresh from standing down from his day job at Frasers Mike Ashley is reportedly on manoeuvres, extending his stake in fashion brand Hugo Boss and taking a position in troubled online retailer ASOS. Clearly the retail kingpin is not done with the sector just yet.
“ASOS’ financial results revealed some significant problems for the business as spending by its core demographic dries up and the company faces rising costs and a more perilous balance sheet position, but Ashley clearly believes there is still value in the brand.”
