Frasers Group snaps up stake in Asos and increases Hugo Boss shares

Frasers Group has once again upped its stake in Hugo Boss, and has also increased its hold in Asos as Mike Ashley reportedly sets his sights on establishing a relationship with the struggling online retailer.

The group increased its investment in Hugo Boss by 4.3 percent, with its shares of common stock now representing 28.5 percent of the German brand’s total share capital.

In a regulatory filing, the firm said its holding value at the closing share price now approximately sits at 960 million euros.

The retail group has regularly upped its stake in the luxury brand as it continues to embark on a mission to cement its position in the premium segment and build on its plans to grow the business inside and outside of the UK.

Its efforts were also seen in its newly expanded stake in Asos, with the group now holding 5.1 percent in the fashion firm.

The move has made Frasers the fourth largest shareholder in the retailer, which earlier this month reported that it had swung into a loss due to a decline in consumer spending.

According to a report by The Telegraph, Frasers is hoping to use its stake in the company to build a potential partnership, as Asos recently announced its intention to rejuvenate its business model.

The British firm said it would be writing off over 100 million pounds in stock and plans to cut its costs in the wake of rising inflation in the UK.

In its regulatory filing for Hugo Boss, Frasers said: “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.”