The offer proposed by Frasers Group values Mulberry at £83 million (~$11.09 million).
British group Frasers, which owns a 37 percent stake in luxury handbag maker Mulberry, recently offered to acquire the latter, saying it was “exceptionally concerned” about the brand's future. The offer proposed by Frasers Group values Mulberry at $11.09 million. Mulberry, whose sales have fallen sharply, last week announced plans to raise nearly $14.71 million to boost its finances.
Mulberry, whose sales have fallen sharply, last week announced plans to raise nearly £11 million (~$14.71 million) to boost its finances.
Frasers Group had only been informed of Mulberry's plan to raise additional funds “immediately prior to its announcement”, the group said in its potential bid statement.
“Given this complete lack of commitment, we believe the status quo is an unsustainable position for Frasers and Mulberry's other minority equity shareholders,” he said.
“As a 37 per cent shareholder, Frasers will not accept another situation at Debenhams where a perfectly viable business is put into administration,” the statement said.
Debenhams, in which Frasers had a stake, went into administration in 2019 after several years of poor sales, with the COVID-19 pandemic being the final blow.
Fiber2Fashion News Desk (DS)
