Treacherous e-mails

Benko’s secret plans with the boss of Hugo Boss

Boss CEO Daniel Grieder (left) and Signa founder René Benko

(Bild: Krone KREATIV/picturedesk, Birbaumer Christof)

Project "Tango": The CEO of the listed Hugo Boss AG wanted to secretly establish a "Fashion Investment Group" with the Tyrolean financial juggler in the first half of 2023.

Daniel Grieder, CEO of Hugo Boss AG, and Signa founder René Benko not only have a business partnership, but also a long-standing private relationship. Both share a preference for exclusive retreats - be it in the mountains or on Lake Garda.

They met again and again at Chalet N, which is still owned by the Benko Foundation. The close ties also deepened on Lake Garda: When Grieder celebrated his dream wedding there in 2022, Benko was more than just a guest.

The real estate speculator is heavily involved in the organizational details. Guests are accommodated at Villa Eden Gardone. Even issues of the "SIGNA Times", a corporate publication of the now financially ailing Signa Holding, are available in the villas. In bilingual form. Even the wedding bill runs across Benko's desk.

Daring 3-stage plan
This personal closeness forms the basis for an ambitious secret project that Grieder and Benko pursued together in 2023, according to research by Krone and News: the establishment of a "Fashion Investment Group". Under the code name "Tango", the listed billion-euro group Hugo Boss was to be transformed through targeted investments and strategic measures - a daring project that not only shone a spotlight on the principles of good corporate governance at Hugo Boss, but also on potential conflicts of interest.

Grieder is considered a star in fashion management, until 2020 he was head of Tommy Hilfiger, since 2021 he has been the boss at Hugo Boss. Just a month ago, the 63-year-old was named "CMO of the Year", Germany's highest award for the role of "Chief Marketing Officer".

The audacity with which the secret plans with Benko were driven forward can be seen in a strictly confidential presentation that Boss boss Daniel Grieder sent to the Tyrolean financial juggler from his private email address on March 26, 2023. It contains: Charts on the company structure and a three-stage plan.

The cover page of the confidential presentation that Grieder sent to Benko

(Bild: zVg)

Even Adidas was targeted
Phase 1: Grieder's group was to become a so-called anchor investor. The plan was to gradually purchase Hugo Boss share packages. The "Fashion Investment Group" was to be organized and managed by Grieder confidants Christoph Zeiss and Martin Weckwerth. The headhunter Zeiss had brought Grieder to Hugo Boss as CEO, the manager Weckwerth was already a member of the Boss board and, according to Grieder, was to rejoin the management board. Grieder's reason in the email to Benko: "So that I can implement decisions more quickly".

Phase 2 provided for investments outside Hugo Boss. For example, in the global brand Adidas or potential takeover targets such as Bally or Bogner.

In phase 3, the final establishment of an independent "Fashion Investment Group" was to be achieved. Only then should Grieder, after his departure from Hugo Boss, officially act as Big Boss.

"Will drive the share price extremely high"
 Grieder's email to "dear Rene" is explosive for several reasons: Firstly, the Boss CEO also wanted his two fellow board members to participate in the "Fashion Investment Group". In the message to Benko, he writes that he would "like to include them minimally in the deal, as they are also important for the result and the doubling of the share price at HB (Hugo Boss, note) and I would also like to have them on board. Again, we can discuss whether I take them over with my share or whether we share them."

On the other hand, Grieder concludes his email to Benko dated March 26, 2023 with the following words:

"As mentioned, we have to implement quickly, as I will announce the extended strategy on June 12, on Investor Day. I.e. instead of 4 billion, 5 billion in sales and 12% EBIT by 2025. I think this will drive the share price extremely high. Does this fit? Best regards, Daniel."

Parts of this strategy were actually presented by Hugo Boss CEO Grieder at the Investor Day.

Why does the CEO of a listed company reveal parts of his strategy to the financial juggler Benko months in advance? This is just one of the many questions raised by the secret "Tango" project. There are others: Was the Hugo Boss supervisory board informed of the detailed plans? Were all provisions of stock corporation law complied with? And what are the consequences of the close temporal connection between the plans and share purchases by Grieder and his wife, who acquired Boss shares worth almost 1.5 million euros in February 2023?

Hugo Boss and CEO Daniel Grieder have left all inquiries about this unanswered since Wednesday. Benko's lawyer has also not issued a statement.