Frasers lifts Burberry stake to 7.42 percent – and already owns almost half of Hugo Boss
British retail group Frasers has raised its stake in Burberry again and is bundling its luxury businesses into a new division. It holds almost 48 percent of Hugo Boss.
Archive image · Photo: Giftzwerg 88 / Wikimedia Commons, CC BY-SA 3.0 (cropped and resized)
Britain's Frasers Group has once again increased its stake in luxury brand Burberry. As FashionNetwork and FashionUnited reported on 12 and 13 October, the group now holds 7.42 percent of the voting rights. At the end of September Frasers had disclosed 6.32 percent, up from 4.16 percent at the start of the year. The entire position is held through sold put options, with expiry dates running into late 2027, according to FashionUnited. Frasers originally became known as the owner of sporting goods chain Sports Direct.
This month Frasers also set up a separate luxury division, Frasers Group Luxury. It includes multi-brand retailer Flannels, US boutique chain The Webster and the historic department store operator Harvey Nichols, which Frasers acquired out of administration. Through this structure the group aims to expand in Europe and North America. According to unconfirmed reports, Frasers pressed the initially reluctant former owner of Harvey Nichols to take a stake in the deal.
Frasers is also a heavyweight in Germany: it holds almost 48 percent of premium fashion house Hugo Boss, according to FashionUnited. Frasers chief executive Michael Murray has become chairman of the Hugo Boss supervisory board. According to FashionNetwork, Frasers is pursuing a takeover of Hugo Boss, which the management board initially opposed. At Hugo Boss itself, Ivica Maric has been chief financial and operating officer since 1 October, succeeding Yves Müller.