Frasers Group (LSE:FRAS) has agreed with Stephan Sturm, Chairman of the Supervisory Board of Hugo Boss, that he will step down from the role as soon as the company's constitution permits.
The move follows Frasers' completion of its voluntary takeover offer for Hugo Boss, announced on 1 September, and marks a consolidation of the retailer's influence over the German fashion group's governance.
Frasers, the Mike Ashley-founded owner of Sports Direct, Flannels and House of Fraser, will seek the appointment of Robert Palmer to the Supervisory Board, joining Frasers chief executive Michael Murray as its second representative.
Both parties described the transition as appropriate timing given Hugo Boss is "entering a new chapter in its corporate history".
Frasers thanked Sturm for his contribution as Chairman and said it intends to continue working with him going forward.
News Intelligence what this means for the company
Frasers has consolidated control of Hugo Boss's governance by engineering the exit of the Supervisory Board chairman and securing a second board seat alongside its CEO. The move follows completion of Frasers' takeover offer and signals intent to deepen operational influence over the German fashion house, where Frasers already holds 47.89% and has publicly stated ambitions to exceed 50%.
Frasers is moving from minority shareholder to active controller of Hugo Boss governance, reducing external oversight and positioning itself to shape strategy and capital allocation. This strengthens Frasers' ability to execute its stated goal of increasing its stake beyond 50%, but also concentrates execution risk on Frasers' management team and exposes the company to Hugo Boss operational performance.
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