ike Ashley’s Fraser Group retail empire has increased its investment in the fashion firm Hugo Boss & Assos.
The retail vehicle, which owns Sports Direct and House of Fraser, said on Monday it now holds a 5.1% stake in online fashion retailer Asos.
Mr. Ashley’s business is now the fourth largest shareholder in Assos, which owns brands including Topshop.
It comes days after Asos fell in annual losses and warned it would remain in the red in the first half of its new fiscal year, amid turnaround efforts and an “incredibly challenging” economic backdrop.
On Monday, Fraser also told investors that it has increased its investment in German fashion house Hugo Boss.
Frasers said his maximum exposure to Hugo Boss now stands at around £840 million, up from a reported £770 million in June.
The investment sees Fraser own 4.3% of Hugo Boss shares, while also holding a 28.5% interest in it through put options.
Put options are contracts that give the owner the right to sell the asset at a pre-agreed price at a future date. Put options, unlike common shares, do not contribute to securing a majority stake or voting rights in a business.
Still, the latest increased investment has given Fraser a 30.9% to 32.8% interest in the German firm.
“The strategic investment provides new opportunities for the Fraser Group company, as well as helping to support the long-term future of existing retail businesses, and the many thousands of jobs they retain,” the company said.
“The Frasers Group has broad ambitions to grow its business in and outside the UK and is constantly looking to expand.”
Credit: www.standard.co.uk /