{"id":36015,"title":"Frasers Group criticises Mulberry’s management after abandoning its takeover plans","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-10-24T05:23:31+00:00","modified":"2024-10-24T05:23:31+00:00","canonical_url":"https://stockmark.it/frasers-group-criticises-mulberrys-management-after-abandoning-its-takeover-plans/","markdown_url":"https://stockmark.it/frasers-group-criticises-mulberrys-management-after-abandoning-its-takeover-plans.md","json_url":"https://stockmark.it/frasers-group-criticises-mulberrys-management-after-abandoning-its-takeover-plans.json","category":"Companies","categories":["Companies","Retail"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-10-24T062302.370.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"Mike Ashley’s Frasers Group criticised Mulberry’s management after it withdrew from its attempt to acquire the luxury handbag manufacturer following a number of rejected bids.\n\nFrasers, Mulberry’s 2nd largest shareholder, with 37% of the company, made several bids for the brand. The latest was a £111m offer this week . All offers were rejected .\n\nChallice is Mulberry’s biggest shareholder. The group, controlled by Christina Ong, a Singaporean entrepreneur, and her husband, has previously stated that it does not intend to sell its shares. Challice holds a 56% share, which means it can block any deal. Frasers – the owner of Sports Direct – made a final bid on Tuesday, offering 150p per share. Mulberry’s board rejected this offer.\n\nThe board unanimously decided that the offer was “untenable” and the company should concentrate its efforts on improving the commercial performance of the firm.\n\nFrasers, which had abandoned its pursuit of Mulberry, continued to criticise Mulberry’s management on Wednesday. Frasers said it was “concerned” about Mulberry’s governance. Frasers said in a letter to investors that it “continues to believe” that the market is facing headwinds and there’s a lack of a commercial plan.\n\nThe retailer group reiterated that it was a “longtime supporter” Mulberry and called for the company to “present a credible plan within the next few months”, while reiterating its request for a place on Mulberry’s board.\n\nMulberry shares traded more than 6% down on Wednesday afternoon. However, they had recovered some of the losses made earlier in day.\n\nFrasers owns House of Fraser, Evans Cycles, and the Flannels luxury clothing chain. The handbag manufacturer said that it had to raise money after its sales dropped and led to a £34m loss before tax in the last financial year. Mulberry warned of a slowdown in shopping among wealthy shoppers from the UK and Asia.\n\nThe company’s board said that the recent appointment Andrea Baldo to the position of chief executive and an emergency £10.75m equity placement had provided the company with “a solid platform” for executing a turnaround.\n\nFrasers stated that it made the first bid for Mulberry because it “would not accept another Debenhams scenario” where a perfectly viable company was “run into bankruptcy”, a reference the £150m losses it suffered from the collapse the department store chain in which it was an investor.\n\nFrasers had to submit a firm bid for Mulberry before 5pm on the 28th October, or it could walk away.\n\nFrasers will not be able to make a new offer on Mulberry for at least six months, unless certain conditions have been met. These include Mulberry’s board accepting such an offer or there has been a significant change in the company.\n\nMulberry was contacted to get a comment."}