UK retail group Frasers is reportedly considering making a multi-billion pound bid to gain control of German luxury fashion brand Hugo Boss. This comes as Frasers has already acquired a stake of over 15% in the company, leading to speculation about a potential takeover. The news of this possible acquisition has caused Hugo Boss’ share price to increase by 7%, resulting in the brand being valued at approximately €3.2 billion or £2.7 billion.

Frasers, known for its ownership of popular brands such as Sports Direct, Jack Wills, and House of Fraser, has been actively expanding its presence in the luxury market. This includes making investments in high-end leather goods specialist Mulberry and opening new flagship stores for its Flannels chain. It is worth noting that Frasers also has significant stakes in value-focused Studio Retail.

While Frasers has traditionally been a strategic shareholder rather than a company seeking control, its recent failed attempt to take control of Debenhams indicates that a takeover is not out of the question. In addition, Hugo Boss’ shares had experienced a recent increase following reports of interest from luxury conglomerate LVMH.

Both Frasers and Hugo Boss have yet to comment on these rumors surrounding the potential bid. Despite the speculation, Hugo Boss remains focused on its recovery plan, with new CEO Daniel Grieder set to assume the position next month. Grieder aims to double the brand’s revenues within five years, drawing inspiration from his previous role as the head of Tommy Hilfiger.

Useful links:
Reuters: Frasers considers multi-billion pound bid for Hugo Boss
Business of Fashion: Hugo Boss recovery plan