Billionaire Mike Ashley tightens grip on Hugo Boss as chairman steps down

British billionaire Mike Ashley is tightening his grip on German fashion house Hugo Boss as its supervisory board chairman, Stephan Sturm, prepares to step down while Ashley’s Frasers Group moves to increase its stake in the company beyond 50%.

Sturm will remain chairman until a successor is elected, Hugo Boss said on Monday, September 14. The company has begun the process of finding his replacement following an agreement between Sturm and Frasers for an orderly transition in the leadership of the supervisory board.

Frasers, which is controlled by Ashley, currently owns about 48% of Hugo Boss. The British retailer said earlier this month that it planned to increase its holding to more than 50%, putting it on course to become the German fashion group’s majority shareholder.

The latest development strengthens Frasers’ influence over Hugo Boss after the retailer launched a €2 billion takeover offer for the German fashion company in June. At the time, Frasers held a 26.06% stake and offered €38 per share for the shares it did not already own.

Frasers subsequently increased its holding to nearly 48%, making it Hugo Boss’ largest shareholder. The group has continued to pursue greater control even after the takeover offer did not result in majority ownership.

Frasers said it had agreed with Sturm that the change in supervisory board leadership was appropriate as Hugo Boss entered a “new chapter.” The retailer is also seeking greater representation on the board and has proposed Robert Palmer, its former company secretary, as another Frasers representative alongside Frasers CEO Michael Murray.

For Ashley, the push for greater control of Hugo Boss is part of Frasers’ broader expansion into premium and luxury retail.

The group owns Sports Direct and House of Fraser and has stakes in businesses including Asos, Debenhams and Currys. In August, Frasers also acquired British luxury department store Harvey Nichols, further expanding its presence in the high-end retail market.

Ashley’s interest in Hugo Boss dates back to 2020, when Frasers first acquired a stake in the German fashion group. Frasers has since increased its ownership substantially and has become increasingly active in seeking greater influence over the company.

The next step will be closely watched as Frasers seeks to move its Hugo Boss stake above the 50% threshold. If successful, the move would give Ashley’s retail group majority ownership of one of Germany’s best-known fashion companies and deepen its expansion into luxury retail.