Mike Ashley's Frasers Group has increased its stake in German fashion brand Hugo Boss to nearly 48%, falling just short of full control despite launching a formal takeover offer. The move deepens Frasers' push into the luxury sector, coming days after it also agreed a £40million rescue deal for Harvey Nichols, as part of the retailer's wider "elevation strategy" to expand its high-end presence beyond brands like Flannels.

Frasers, which had breached the 30% threshold triggering a mandatory bid under German law, offered around £1.7billion (€38 per share) for the remaining shares, but Hugo Boss's board rejected the offer as inadequate and urged shareholders to reject it; only 17.6% of investors had tendered shares by last week. Frasers has built its Hugo Boss holding since 2020 and has reportedly hoped to instal Michael Murray, Ashley's son-in-law, as chief executive, while Murray has warned the luxury push will require "tough choices". Frasers also holds a 4.1% stake in Burberry, and its shares rose 1.2% to 804p on the news, up 20% year-to-date.