Mulberry has rejected an £83m takeover bid from Mike Ashley’s Frasers Group

In a statement published on the London Stock Exchange this morning, Mulberry said it “considered carefully” the offer but that its majority shareholder Challice has “no interest” in supporting the bid.

Mulberry said the board believes the recent appointment of new chief executive Andrea Baldo and its plans to raise £10m via new ordinary shares, plus its retail offer to raise £750,000 from existing shareholders, provides the business with a “solid platform” to embark on its turnaround strategy.

The luxury accessories retailer added that the offer proposed by Frasers Group “does not recognise the company’s substantial future potential value”.

Mulberry said in a statement: “The board has no intention of withdrawing or terminating the subscription or the retail offer announced on September 27, 2024, believing that the capital raising, allowing all Mulberry shareholders to participate on the same terms, is the fairest and most effective way of accessing additional equity funding.

“Recognising that Frasers is a committed and important investor in Mulberry, and has publicly stated that it would have been willing to underwrite the subscription, the board looks forward to engaging further with Frasers regarding a pro rata participation in the subscription.”

Frasers Group is understood to have until October 28 to confirm its intention to make a firm offer for Mulberry or to walk away.

The news comes after Frasers confirmed a cash offer for the luxury brand on Monday, which valued Mulberry at £83m.

Frasers, which holds a 37% stake in the business, said it would not accept “another Debenhams situation” that sees another “viable business” fall into administration.

It added that it believes Frasers to be “the best steward” to return the business to profitability.