Frasers Group stands firm on Hugo Boss takeover bid

In the takeover bid for Hugo Boss, major shareholder Frasers Group will not increase its offer. The company announced this in London. The British company has been attempting to take the helm of the German brand since mid-June through a voluntary public offer. It is offering 38 euros per share. Frasers is a retail conglomerate backed by entrepreneur Mike Ashley. According to previous statements, the group holds a direct stake of just over 26 percent in Hugo Boss. The Hugo Boss share price barely reacted to the statement, trading at 37.72 euros on Thursday afternoon, below the offer price.

According to its own statements, Hugo Boss was not informed of the major shareholder's move in mid-June. The management team, led by CEO Daniel Grieder, deliberately kept a low profile afterwards. The offer is not without reason. If Frasers had exceeded the 30 percent threshold, a mandatory offer to the remaining shareholders would have been required. This is a legal requirement. The company stated it opted for a voluntary offer to consolidate its investment in Hugo Boss.

The group has 20,000 employees worldwide, with more than 4,400 in Germany. The responsible trade union, IG Metall, is initially holding back on an assessment of the takeover attempt. The district manager for Baden-Württemberg, Barbara Resch, said: “IG Metall acknowledges the Frasers Group's takeover plans and will closely monitor the developments surrounding Hugo Boss. We expect the interests of the local employees to be protected at all times.”

The fashion group is currently struggling with weak consumer sentiment. For the current year, management expects a currency-adjusted sales decline in the mid to high single-digit percentage range. Earnings before interest and taxes are expected to reach between 300 and 350 million euros. In 2025, a turnover of around 4.3 billion euros was recorded, with an operating profit of 391 million euros.

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