Sports Direct-owner Frasers lifts Asos and Hugo Boss stakeson October 24, 2022 at 7:21 am

The owner of Sports Direct has become the fourth-largest shareholder in online fashion retailer Asos.

Frasers Group, which is owned by billionaire Mike Ashley, now owns 5% of Asos after building up shares in the company that holds the Topshop brand.

On Monday, Frasers also announced it had raised its investment in Hugo Boss.

The company has bought up a number of UK retailers over the past few years spanning sportswear, fashion, furniture and bikes.

It now owns 4.3% of Hugo Boss shares directly and an extra 28.5% through the sale of derivatives known as put options.

“Frasers Group has extensive ambitions to grow the business inside and outside of the UK and is constantly exploring the potential for further expansion,” a trading statement said on Monday.

The retail giant said the move was the latest example of its “its drive to expand and acquire businesses and brands that can strengthen Frasers Group”.

Asos recently reported a loss as the cost of living hit shoppers’ budgets and the company has warned that it expects people to cut back even further in the months ahead.

The buy-up of Asos shares means that Frasers Group is now the fourth largest shareholder in the business.

Frasers Group said it was part of the “ordinary course of business to develop relationships and partnerships with other retailers, suppliers and brands”.

Mr Ashley, who founded the sportswear retailer Sports Direct, has in the past gone on to take over businesses he invests in including House of Fraser.

This year he stepped down as chief executive of the company, handing over the role to his son-in-law, Michael Murray, though Mr Ashley remains as the controlling shareholder in the group.

The increase in Frasers’ shareholding in Asos – first reported by the Sunday Telegraph – will not give it any control over the online fashion business or a position on its board.

Along with House of Fraser and Sports Direct, the group also owns Flannels, Game, Jack Wills, Evans Cycles and Sofa.com.

The group has also built z significant shareholding in the fashion brand and Mulberry.