Mike Ashley’s Frasers raises Hugo Boss exposure and buys ASOS stake

LONDON, Oct 24 (Reuters) – Mike Ashley’s Frasers Group (FRAS.L) has elevated its most publicity to German style home Hugo Boss (BOSSn.DE) to 840 million kilos ($954 million) and has constructed a greater than 5% stake in struggling British on-line style retailer ASOS (ASOS.L).

Frasers, previously known as Sports activities Direct, is on a drive to maneuver upmarket and mentioned on Monday it now holds 4.3% of Hugo Boss inventory instantly and an additional 28.5% by way of the sale of derivatives often known as put choices.

A Frasers spokesperson additionally confirmed a Telegraph report that the British sportswear and attire retailer now holds more than 5% of ASOS.

A stake in extra of 5% would require a regulatory submitting by ASOS. The corporate declined to remark.

Final Wednesday ASOS, the one-time British poster baby for the shift to on-line style retailing, mentioned it will overhaul its business model after the financial crunch and a string of operational issues hammered its earnings.

Frasers first took a stake in Hugo Boss – a provider to its Home of Fraser and Flannels chains – in 2020.

“Frasers Group has an extended historical past … of constructing strategic investments to develop relationships and partnerships with different retailers, suppliers and types,” it mentioned, including that it has “intensive ambitions” to develop within the UK and past.

The group this month disclosed a 4.5% stake in on-line clothes retailer N Brown (BWNG.L) and can be searching for full possession of Australian on-line retailer Mysale (MYSL.L).

In June Frasers acquired ASOS rival Missguided out of administration for 20 million kilos. It additionally purchased on-line retailer Studio Retail in February.

Shares in ASOS have been up 2.5% at 0827 GMT, paring 2022 losses to 78%. Shares in Frasers firmed by 0.6% whereas shares in Hugo Boss have been up 0.2%.

Ashley stepped down as Frasers’ chief govt in Could and was succeeded by his son-in-law Michael Murray however nonetheless owns 69% of Frasers’ fairness.

($1 = 0.8804 kilos)

Reporting by James Davey; Enhancing by David Goodman and David Holmes

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