Mike Ashley has tightened his grip on Hugo Boss after his son-in-law, the boss of Frasers Group, was made chairman of the German fashion house. 

Frasers, which Ashley founded as Sports Direct, has been vying for control of Hugo Boss for months, resulting in him toppling the chairman of its supervisory board, Stefan Sturm, earlier this week.

The group said on Wednesday that Michael Murray, Ashley’s son-in-law, will succeed Sturm as chair of the panel, which oversees the fashion brand’s managing board and appoints its members. 

“Together with my colleagues on the supervisory board and the managing board, I look forward to building on the company’s strong foundation and supporting the execution of its strategic priorities,” Murray said. 

Frasers pushed up its holding in Hugo Boss to nearly 48 per cent after offering €38 per share to existing investors in the group, after the firm’s board slapped down its “inadequate” direct takeover offer. 

Frasers shares dip

Ashley’s group, which is pushing into up-market fashion and away from Sports Direct’s discount roots, has told investors that it wants to push its holding in Hugo Boss above the 50 per cent mark. 

Shares in Frasers, which trades on the FTSE 250, fell nearly five per cent on Wednesday morning, to 746.25p. 

Sturm stepped down as supervisory board chair on Monday, saying that “recent changes in the company’s shareholder structure” meant it was an “appropriate point in time for an orderly transition” of power. 

Murray has served as Frasers Group’s chief executive since 2022. He said on Wednesday that he wants to take advantage of Hugo Boss’s “untapped potential”. He added: “By ensuring continuity and maintaining a clear long-term perspective, we will focus on unlocking the full potential of Hugo Boss and creating sustainable value for all shareholders and stakeholders.”

Daniel Greder, chief executive of the German fashion house, said he is confident that Murray and Frasers support the group’s existing strategy. 

He added: “As the managing board, we look forward to further pursuing our course with discipline, focus, and clear commitment. 

“We will work closely with Michael Murray and the Supervisory Board to realise our strategic and financial ambitions and create sustainable value.”

Sports Direct, which Ashley founded in 1982, surged to prominence for selling sportswear at rock-bottom prices. But last month, Frasers snapped up struggling department store chain Harvey Nichols to boost the visibility of its luxury label, Flannels.

Frasers has garnered a reputation for taking stakes in rival companies – like Boohoo and Mulberry – and using these positions to make aggressive plays for change within the firm.