Mike Ashley’s Frasers Group has raised its stake in Hugo Boss to almost 48 per cent after 17.6 per cent of the German fashion house’s investors accepted its takeover offer, the retailer said in a brief stock exchange statement – a holding that tightens its grip on the brand but falls short of majority control.

The Sports Direct owner launched a £1.7 billion offer for Hugo Boss at €38 per share, part of a run of deals that has also included the acquisition of Harvey Nichols, the luxury department store chain, and a takeover offer for Accent Group, the Australian owner of The Athlete’s Foot shoe brand.

Frasers has spent several years building its position in Hugo Boss, which it stocks in its Flannels and Frasers shops, and stepping up efforts to exert influence over the brand. That campaign has included threatening to vote against future dividend payments and successfully pushing for a seat on the label’s supervisory board for Michael Murray, the Frasers chief executive and Ashley’s son-in-law.

Analysts described the offer as low, voluntary and lacking a minimum acceptance threshold, suggesting the group was “seeking optionality rather than necessarily full control”. Submitting a voluntary offer allowed Frasers to build its stake beyond 30 per cent without triggering the mandatory bid required under German takeover rules once an investor crosses that threshold.

Ashley may yet need more than 50 per cent. Sources told the Times in July that Frasers was laying the groundwork for Murray to be installed as chief executive of Hugo Boss, a move that would follow a playbook the retailer has deployed before.

The Hugo Boss board had urged shareholders to reject the €38 per share bid, which it said undervalued the brand and was “inadequate from a financial point of view”.

Founded in 1924, Hugo Boss is the largest premium fashion house in Germany, with global sales topping €4.2 billion. The company is in the midst of a turnaround as it contends with brand confusion, a global decline in demand for formalwear and a wider slowdown in the clothing market.

The enlarged stake forms part of Ashley’s long-running effort to push Frasers upmarket from its roots selling discounted sportswear through Sports Direct. Last week the group secured a reported £40 million deal to acquire Harvey Nichols, which it hopes will help expand its relationships with luxury brands including Moncler, Burberry and Gucci. Frasers also disclosed in July that it had increased its holding in Burberry to 4.2 per cent, making it the third-largest shareholder in the company. Ashley stepped down as chief executive of Frasers in 2022 but remains its majority shareholder.

Frasers shares rose 2 per cent, or 16p, to 811p on Tuesday, giving the group a market value of roughly £3.5 billion. The stock is up about 22 per cent this year, despite the retailer withholding annual financial guidance last month because of the takeover offers for Hugo Boss and Accent Group.

Profit before tax rose 38.9 per cent to £527.8 million in the year to April, largely on a £117.7 million increase in premiums from strategic investments, of which the Hugo Boss and Accent stakes contributed nearly £50 million.

Charles Allen, senior retail industry analyst at Bloomberg Intelligence, said: “Frasers Group’s Harvey Nichols acquisition and enlarged Hugo Boss stake give it a chance to demonstrate operating discipline at two troubled retailers and reset investor perceptions.

“Its low valuation, operational consistency and focus on cashflow remain strengths, while the extent of its involvement in Hugo Boss will test strategic intent.”