LONDON — It’s been a frenetic summer for Mike Ashley‘s Frasers Group, which has launched an offensive on retail brands ranging from Harvey Nichols in the U.K. to Hugo Boss and Puma in Germany.
Now, Frasers has raised its stake in Burberry to 4.16 percent from 3.05 percent via a series of put options, proving just how eager the group is to keep its name in the headlines, bolster share prices and have a bigger say in how companies — especially ones that are struggling — do business.
Known here as the Grim Reaper of the high street, Ashley pounces on companies where he perceives weakness, and does what he can to bounce out the executives he doesn’t like.
Although it’s unlikely that Frasers, owner of fashion retailers Flannels and Frasers, Savile Row tailor Gieves and Hawkes and mass market brands Sports Direct and Evans Cycles, will take over Burberry, it’s clear the group wants to flex its muscles, and have a little fun.
Frasers’ attentions also bolstered the Burberry shares. They closed up nearly 5 percent at 11.93 pounds on the London Stock Exchange on Wednesday, a day after Frasers’ move was first disclosed. Frasers’ shares closed up 2 percent at 8.16 pounds.
Burberry does not comment on shareholders, while Frasers did not reply to a request for comment.
Michael Murray
Courtesy of Frasers Group, Louis Bamford Dink
Frasers is nothing if not restless in its pursuit of power — on the shop floor or in the boardroom.
The Burberry move comes just weeks after the board of Hugo Boss urged shareholders to say “no” to an unsolicited offer from Frasers. The board argued that Frasers’ 38 euros per share proposal does not adequately reflect the brand’s prospects and “future value creation potential.”
Boss also poured cold water on Frasers’ intentions, arguing that its offer was opportunistic and “does not envisage specific changes or measures affecting current business activities” of the company or its commercial and strategic objectives.
After Frasers first made the offer in June, Jefferies said shareholders would likely resist a full-blown takeover due to the “considerable requirement, in terms of both cash and management bandwidth, that a deal of this scale would absorb.”
Jefferies added that Frasers is “significantly exposed” to the Hugo Boss share price, which may have prompted the bid.
Frasers has refused to hike the offer and, according to media reports, wants to install Michael Murray, Ashley’s son-in-law and Frasers Group CEO, at the helm of Boss.
That would knock out industry veteran Daniel Grieder, former CEO of Tommy Hilfiger Global, who is spearheading the Boss revitalization strategy, Claim 5 Touchdown, which runs through 2028.
Daniel Grieder
Courtesy of Hugo Boss
Frasers is also said to be one of the U.K. bidders for Harvey Nichols, alongside Next and a series of international investors. Industry sources said Ashley is particularly keen to get his hands on Harvey Nichols’ Knightsbridge store (although there are only five years left on the lease) and the Edinburgh unit, too.
But luxury has proven tricky territory for Frasers in the past.
In 2023, Frasers bought Matches for 52 million pounds in a fire sale and then put the retailer into administration a few months later, arguing it was too expensive to fix.
It then repurchased the intellectual property and nontangibles belonging to the store, a move that rocked the industry and forced designers and longtime Matches suppliers to scramble for money and find new sales channels.
Last year, Frasers sold the Matches IP to the founders of the members shopping app Mile. Matches will become part of a new group called Hulcan, formed by Mile cofounders Joe Wilkinson and Mario Maher.
Two years ago Ashley attempted to take over Mulberry, but the board and majority owner Christina Ong successfully fought him off.
As this summer’s dramas play out, one thing’s for sure: Frasers always finds new ways of rattling its saber — and keeping brands and fellow retailers guessing.
