Mike Ashley's Frasers Group holds rights to 4.2% Burberry stake via put options

Published Jul 29, 10:03 AM UTC

Mike Ashley's Frasers Group has revealed it holds rights to a 4.2% stake in British fashion house Burberry through put options, potentially making it one of the largest shareholders. The stake is worth approximately £171 million based on Burberry's current share price. This move is part of Frasers' broader strategy to expand into luxury fashion, building on its ownership of designer brand Flannels. Burberry has been undergoing a turnaround under CEO Joshua Schulman, who has cut costs by £100 million and pivoted towards 'timeless British luxury,' resulting in a 5% revenue increase. Frasers has a history of aggressive plays for control of retailers, including a recent unsolicited £1.7 billion bid for Hugo Boss and previous failed attempts to acquire Mulberry. The entry comes at a potential inflection point for Burberry, whose shares have fallen about 40% in recent years.