Mulberry board backs owner’s decision to reject Frasers takeover bid

Luxury retailer Mulberry’s board has backed its owner Challice to reject a takeover £111m takeover bid by Frasers Group.

In a statement Mulberry’s board said: “After careful consideration with its advisers and in light of the above, the board is unanimously of the view that the possible offer is untenable and that the company should focus its attention on driving the commercial performance of the business.”

The board reiterated its statement issued at the company’s last results in September to add: “We believe that the combination of the appointment of a new CEO, our new debt facility and the capital raising announced today will put the Group on a firm footing to ensure we are well set up for future growth.”

This comes after Frasers original £86m takeover bid for the brand was rejected. The Sports Direct owner revised its bid for the luxury brand, which valued the business at £111m but was rejected again by Challice.

Mulberry said at the time that its majority shareholder Challice Ltd had “no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking”.