Mulberry, the British luxury brand, has turned down retailer Frasers’ US $ 111 million buyout offer, claiming the transaction undervalued the business and its majority shareholder did not support it.
Loss-producing Mulberry, a brand well-known for its luxury clothing and accessories, revealed its intentions to acquire money from investors on Friday. Challice, a 56 per cent Singaporean supporter owned by billionaires Christina Ong and Ong Beng Seng, has offered a US $ 13.18 million subscription.
Frasers has until 28th October to withdraw or submit a formal bid.
Frasers, the second-largest investor in Mulberry after Mike Ashley, stated in its proposal that it would have been happy to finance the full subscription, maybe on more benevolent conditions for Mulberry.
The company has been attempting to gain traction in the luxury goods sector by purchasing online player MATCHES last year and THG’s network of luxury goods websites in June. The company’s “elevation strategy” aims to move the business upmarket.
Frasers acquired MATCHES’s intellectual property assets in April after the company entered administration in March.
On Monday, it stated that it wished to steer clear of another Debenhams predicament. Frasers invested US $ 197.75 million in the department store Debenhams, which closed its doors in 2021.
Mulberry stated that its efforts to raise finance and the hiring of Andrea Baldo as CEO should aid in turning around the company.
Mulberry stated that while it had no intention of withdrawing or ending the retail offer or membership, it will speak with Frasers about a proportionate share of the subscription. Mulberry said that the company’s “substantial future potential value” was not acknowledged in Frasers’ bid.
