British retail, sport and intellectual property company Frasers Group, which holds a 37-per cent stake in luxury handbag maker Mulberry, recently offered to take over the latter, saying it was ‘exceptionally concerned’ about the brand’s future.
Frasers Group’s proposed offer values Mulberry at £83 million (~$11.09 million).
Mulberry, whose sales have sharply dropped, last week announced plans to raise nearly £11 million (~$14.71 million) to boost its finances.
Frasers Group had only been made aware of Mulberry’s plan to raise additional funds ‘immediately prior to its announcement’, the group said in its statement of possible offer.
“Given this total lack of engagement, we believe the status quo to be an untenable position for Frasers and the other minority holders of Mulberry shares,” it said.
“As a 37-per cent shareholder, Frasers will not accept another Debenhams situation where a perfectly viable business is run into administration,” the statement said.
Debenhams, in which Frasers held a stake, went into administration in 2019 after several years of low sales, with the COVID-19 pandemic being the final blow.
Fibre2Fashion News Desk (DS)
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