(Bloomberg) — British sporting goods billionaire Mike Ashley’s Frasers Group Plc raised its stake in fashion retailer Hugo Boss AG, ramping up its exposure to the German retailer as it works on a rejuvenation effort.
Frasers valued the new holding at about 900 million euros ($944 million) in a statement Wednesday, two years after first investing about 108 million euros in the maker of Hugo athleisure leggings.
Ashley has garnered a reputation for taking over failing retailers and building up stakes in rivals. Earlier this month, Frasers snapped up online brand Missguided after it entered UK insolvency proceedings.
Hugo Boss is in the process of shifting its offerings toward more casual fashion. The investment “reflects Frasers Group’s belief in the Hugo Boss brand, strategy and management team,” the company said.
Other Ashley investments have included video game retailer Game Digital and Jack Wills, an apparel supplier.
Frasers said it has 3.4 million shares of common stock that make up 4.9% of Hugo Boss’s total share capital and another 18.3 million shares via the sale of put options that represent 26% of the capital. The sale of put options means Fraser doesn’t yet own the stock, just that it committed to buying it at a specific price.
Hugo Boss shares fell as much as 1.7% in early Frankfurt trading, while Frasers declined as much as 2.1% in London.
(Updates with date of first investment in second paragraph)
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