Frasers Group, the parent of Sports Direct, proposed an £83 million ($111 mm) offer to buy the luxury brand Mulberry.
Frasers, which also owns Evans Cycles, the House of Fraser department stores, the luxury streetwear chain Flannels and multiple brands from Slazenger to Jack Wills, already owns a 37 percent stake in Mulberry.
In a regulatory statement, Frasers said it was “exceptionally concerned” about the future of the British handbag maker and was making an offer for the rest of the company after Mulberry announced an emergency £10.75 million placement of shares late Friday to shore up its balance sheet.
Mulberry had said it needed to raise cash after it fell to a £34 million pre-tax loss in the year to the end of March, from a £13 million profit a year before, after sales fell by 4 percent to £153 million. It added that sales were down by 18 percent for the 25 weeks since the period ended.
Frasers added it wanted to avoid “another Debenhams situation” – referring to the department store chain that collapsed in 2019. Frasers had invested £150 million in Debenhams, which went out of business in 2021 and wiped out shareholder’s stakes.
Frasers said in its statement that it “was not aware of the [planned cash raising by Mulberry] until immediately prior to its announcement” and would have been willing to underwrite it on better terms than those announced.
Mulberry, founded in 1971, is best known for its leather goods, particularly women’s handbags.
Photo courtesy Mulberry
