Mulberry’s plans to raise more than £10m to fund its turnaround strategy, which it revealed late last week, has spurred Frasers Group which holds 37 per cent of Mulberry’s shares to make a cash offer for the business. Mulberry’s latest results show an underlying loss of £22.60m for the year to 30 March 2024.
Mulberry chairman Chris Roberts said: “Over the course of the year, the macro-economic environment presented significant challenges for the luxury sector, with markets across the globe facing a tightening of consumer spending.
“Whilst the financial performance for the year was disappointing, we believe that the combination of the appointment of a new CEO, our new debt facility and the capital raising announced today will put the group on a firm footing to ensure we are well set up for growth.”
Shareholder Frasers Group was irked not to have been pre-advised of the Mulberry board’s fundraising move and has offered 130p per share for the shares it does not already own.
A spokesperson for Frasers Group said: “As a committed long-term investor in Mulberry, Frasers would have been willing to underwrite the subscription in its entirety, potentially on terms for the company. 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.
“We have long been supportive of the brand and commercial opportunities available to the company. With our leading retail expertise and presence, and best in class distribution capability, we believe Frasers to be the best steward for returning Mulberry to profitability.
“As a 37 per cent shareholder, Frasers will not accept another Debenhams situation where a perfectly viable business is run into administration.”
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