Frasers Group has made an £83 million takeover bid for struggling purse maker Mulberry.
The British style model has been hit laborious by a downturn within the luxurious sector and warned late final week that it might want to boost money amid considerations about its long-term future.
Frasers Group, which owns Sports activities Direct and Flannels, already owns a 37% stake within the firm.
The retail big mentioned it put ahead an strategy price 130p per share, valuing the stake within the firm it doesn’t personal at £52.4 million.
It comes after Mulberry mentioned it wanted to boost over £10 million on Friday after slumping to a major loss for the previous yr.
The posh style agency slumped to a £34.1 million pre-tax loss for the yr to 31 March, in contrast with a £13.2 million revenue a yr earlier.
It has warned that gross sales have dropped extra sharply over the spring and summer time, with group revenues plunging 18% over the previous 25 weeks as rich customers rein in spending.
Throughout the accounts, Mulberry cautioned that the downturn has resulted in a “materials uncertainty, which can forged important doubt on the group and dad or mum firm’s skill to proceed as a going concern” if its struggles proceed.
Frasers mentioned it was pushing to take management of Mulberry partly attributable to these considerations concerning the long-term viability of the enterprise.
The corporate mentioned: “Frasers are exceptionally involved by the audit opinion within the newest annual report launched on Friday 27 September 2024, which notes a “materials uncertainty associated to going concern”.
“As a 37% shareholder, Frasers is not going to settle for one other Debenhams scenario the place a superbly viable enterprise is run into administration.”
Mulberry was based in 1971 in Somerset by Roger Saul and has celeb followers together with the Princess of Wales and Kate Moss.
