Frasers pulls plug on multimillion-pound Mulberry takeover bid over governance concerns

Frasers said it does not intend to make an offer for Mulberry after its revised takeover bid of £111m was rejected by the luxury fashion retailer.

The Sports Direct owner called it a “disappointing outcome”, but added that it “remains a long-term supporter of the well-loved British brand, Mulberry” and “continues to believe that market headwinds, and a clear lack of a commercial plan, place the company in a very difficult financial position”.

The Mike Ashley-owned group said it was concerned about governance issues in particular, including “another scenario where the board chooses to exclusively engage with Challice [Mulberry’s owner] in private on significant matters” and requested to put a Frasers appointee on the Mulberry board, which it has “made several times in recent history”.

This comes after Mulberry’s board rejected a revised takeover bid by Frasers calling the offer untenable. In a statement, the board said: “After careful consideration with its advisors and in light of the above, the board is unanimous 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 and added: “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.”