Frasers Group reduces stake in Hugo Boss

The British retail group Frasers Group Plc has reduced its stake in the Metzingen fashion group Hugo Boss AG. After sales last week, the trading group and its owner Mike Ashley now only control around 19.6 percent of the shares through self-owned shares and financial instruments such as put options, Hugo Boss announced on Tuesday. Previously it was 24.4 percent.

The British retailer acquired Hugo Boss in the summer of 2020 as part of its aggressive investment strategy and has since gradually increased its stake in the German clothing company. According to the current announcement, Ashley and his companies currently hold 1.63 percent of Hugo Boss shares directly after the recent sales.

The Frasers Group is currently conducting a legal dispute in London against the financial company Morgan Stanley due to previous transactions as part of the Hugo Boss investment. The retailer accuses the investment house of causing financial damage through an incorrect margin call in May 2021 and is now demanding compensation of around 50 million euros. On Thursday, Frasers Group confirmed previous press reports that the group also wants to have James Gorman, the CEO of Morgan Stanley, personally interviewed in New York as part of the process.

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