Key facts
- Frasers Group CEO Michael Murray dismissed rumours of strained brand relationships as "nonsense".
- The company recently entered the auction to acquire luxury retailer Harvey Nichols.
- Frasers Group reported an 8% revenue jump to £3.3bn and a 39% pre-tax profit increase to £528m for the year to April.
- Murray criticized UK business rates and tax hikes, stating they are causing a "death spiral" for high streets.
- The company did not provide a profit forecast due to uncertainty surrounding a €2bn bid for Hugo Boss.
Frasers Group CEO Michael Murray has vehemently denied reports suggesting that brand partners are hesitant to collaborate with the company, dismissing them as "nonsense rumours" likely intended to sabotage Frasers' aggressive acquisition strategies. The group, which owns Sports Direct and Flannels, recently participated in the auction for luxury retailer Harvey Nichols.
Murray stated that Frasers maintains strong relationships with its brand partners and consistently meets its financial obligations. He suggested that such rumours originate from competitors seeking to undermine the company's reputation. Harvey Nichols has been exploring a sale, having lost ground to rivals like Selfridges and Harrods.
Frasers Group, founded by billionaire Mike Ashley, has a history of making bold moves to acquire retailers, including recent bids for Hugo Boss and Mulberry. The company cited uncertainty surrounding its €2bn bid for Hugo Boss as the reason for not issuing a profit forecast.
In its full-year results, Frasers Group reported an 8% increase in revenue to £3.3bn and a 39% rise in pre-tax profit to £528m for the year ending April. Murray also expressed strong concerns about the state of UK high streets, describing them as being in a "death spiral" due to rising business rates, national insurance contributions, and minimum wages. He called for a reform of the "archaic" business rates system, arguing it unfairly disadvantages physical retailers compared to online competitors.