Mike Ashley seeks Mulberry to prevent another Debenhams collapse
- Frasers Group has made a non-binding takeover bid for Mulberry, valuing the company at £83 million.
- Mulberry reported a £34.1 million loss last year and is seeking to raise cash through new share sales.
- Frasers aims to prevent a situation similar to the collapse of Debenhams, emphasizing the need for a viable business to remain operational.
In the UK, Frasers Group, owned by Mike Ashley, has made a non-binding takeover bid for the struggling luxury brand Mulberry, which it already partially owns with a 37% stake. The offer, valued at £83 million, comes after Mulberry reported a significant loss of £34.1 million in its last financial year and announced plans to raise cash through new share sales. Frasers expressed concern over Mulberry's financial health, particularly regarding a warning in its latest annual report about material uncertainty affecting its ability to continue as a going concern. Frasers aims to prevent a repeat of the Debenhams collapse, where a viable business was driven into administration. The bid is subject to Mulberry's board's recommendation and the withdrawal of a subscription offer from its majority shareholder. Frasers has until October 28 to make a firm offer or withdraw from the process. This move reflects Frasers' strategy to expand its portfolio amid challenges in the luxury sector, particularly due to declining demand in key markets like China.