Frasers Group has revealed that it is not pursuing the Mulberry takeover due to the internal governance clashes between the retail giant and the luxury brand’s board members. As per reports, the British luxury brand’s board had unanimously rejected Fraser’s latest offer.
Challice, Mulberry’s majority shareholder with 56 per cent said that it had ‘no interest’ in selling its shares to the Frasers Group or even providing the retail brand with any possible offers. While Singapore-based Challice owns majority shares, Frasers owns 37 per cent stake in the luxury retail brand.
The retail conglomerate called the outcome ‘disappointing’ but at the same time assure that they will continue supporting the British brand, said reports. Frasers further added that they surely do not entertain situations wherein the Mulberry board chooses ‘exclusively engage with Challice in private on significant matters,’ referring to the US $ 12.97 million emergency subscription arrangement done with Challice.
The unsuccessful takeover plans have been diverted to a larger issue of boardroom dispute wherein the retail chain has still shown continued support to Mulberry.
