Frasers Group, the retail giant founded by Mike Ashley, has announced a takeover offer for German fashion brand Hugo Boss.

The company, which already owns just over 25 per cent of Hugo Boss after gradually increasing its stake since 2020, has offered €1.98 billion (£1.73 billion) to acquire the remaining shares.

In response, Hugo Boss said it would carefully review the proposal before issuing a formal statement to shareholders.

Frasers Group, formerly known as Sports Direct, owns a diverse portfolio of retail brands including House of Fraser, Game, Jack Wills and Evans Cycles. The group is also the largest shareholder in Boohoo, despite a well-publicised and often strained relationship with the online retailer.

While Frasers has become known for acquiring struggling retail businesses out of administration, its long-term investment in Hugo Boss represents a different strategy. The German fashion label remains a profitable and internationally recognised brand, with Frasers steadily increasing its holding over the past several years.

Under German regulations, investors approaching a 30 per cent ownership stake are generally required to make an offer for the entire company. Frasers is now nearing that threshold. The company said it expects the acquisition to be completed before the end of the year, subject to regulatory approvals and customary legal checks.

Hugo Boss described the approach as “unsolicited” and stated that the proposal had not been coordinated with the company. The brand said it would keep shareholders and the market informed of any further developments.

Frasers reiterated its confidence in Hugo Boss, highlighting its track record of strategic investments and describing itself as a long-term investor that continues to support the company’s leadership team.

Mr Ashley remains the largest shareholder in Frasers Group, while the company’s Chief Executive is his son-in-law, Michael Murray.

During his time leading Sports Direct, Mr Ashley faced criticism over working practices and frequently attracted headlines for his outspoken comments and unconventional management style.

Outside retail, Mr Ashley also owned Newcastle United for 14 years, a period marked by mixed results and frequent clashes with supporters, including his decision to temporarily rename St James’ Park as the Sports Direct Arena.