×
196
Fashion Jobs
ARCADIA GROUP
Commercial Marketing Manager
Permanent · London
PUMA
Operations Coordinator Ecommerce
Permanent · Manchester
LAIDBACK LONDON
Social Media And E-Commerce Manager
Permanent · HARROW
SHISEIDO
Bareminerals Account Manager - Boots, Hull (30)
Permanent · Kingston upon Hull
NEW BALANCE
Associate Marketing Manager, European Key Accounts
Permanent · Warrington
ARCADIA GROUP
SEO Executive
Permanent · London
ARCADIA GROUP
HR Manager - Leeds Distribution Centre
Permanent · Leeds
SHISEIDO
Bareminerals Account Manager - Boots Clayton Square (30)
Permanent · Liverpool
SHISEIDO
Bareminerals Account Manager - Debenhams, Trafford (35)
Permanent · Stretford
SHISEIDO
Bareminerals Account Manager - Debenhams, Carlisle (22.5)
Permanent · Carlisle
ARCADIA GROUP
Environments And Release Manager
Permanent · LONDON
ARCADIA GROUP
Operations Engineering Manager - Technology
Permanent · London
SHISEIDO
Bareminerals Account Manager - Debenhams, Colchester (Maternity Cover)
Permanent · Colchester
TOPSHOP TOPMAN
Online Visual Merchandising Manager
Permanent · London
TOPMAN
Buyer (Maternity Cover)
Permanent · London
SHISEIDO
Accounts Payable Manager
Permanent · LONDON
BURTON
Senior Buyer - Tailoring - Maternity Cover
Permanent · LONDON
TOPSHOP TOPMAN
Senior Marketing Manager
Permanent · London
TJX CORPORATE
Information Technology Graduate (2021)
Permanent · WATFORD
SHISEIDO
Bareminerals Account Manager - Hoopers, Wilmslow (Maternity Cover) (37.5)
Permanent · Manchester
SHISEIDO
Bareminerals Account Manager - Debenhams, Winchester (Maternity Cover)
Permanent · Hampshire
SHISEIDO
Bareminerals Account Manager - Debenhams, Ipswich (37.5)
Permanent · Ipswich
Published
Nov 19, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Frasers' Mulberry stake hits 37% as it considers buying the brand

Published
Nov 19, 2020

Frasers Group is continuing its deep dive into the luxury sector. On Thursday it announced that it has increased its already-large stake in leather goods company Mulberry and could make an offer for the brand.


Mulberry


The company has been building its stake in Mulberry since February this year when it announced a 12.5% holding. And only this month it raised that holding to just under 30%. But as of this week, it owns almost 37% of the company having acquired a chunk of shares at 150p each from Kaupthing.

Usually, a holding of 30% or over would be the trigger for an obligatory takeover offer. But that isn't the case here because the new purchase doesn't make Frasers Mulberry's biggest shareholder. At the moment, Challice Ltd holds around 56% of the issued share capital, and Frasers has been granted a dispensation by the Panel on Takeovers and Mergers, which means it doesn’t have to make a mandatory cash offer.

Yet that doesn't mean an offer might not be forthcoming. The group said that it’s still reserving its right to make a voluntary offer for the company”. It has a deadline to do this of December 17, but this could be extended if the Takeover Panel agrees.

Frasers also said any voluntary offer to Mulberry shareholders would be made in cash. 

It's certainly an interesting prospect and is a reflection of the determination of Frasers boss Mike Ashley to move his group upmarket. 

While the company owns the Flannels designer fashion chain and also House of Fraser department stores, its giant Sports Direct business had suffered from being seen as more downmarket than rival JD sports. This meant it hadn't had such favourable access to important product launches and led the company into a new strategy that saw it upgrading Sports Direct stores and talking of turning itself into the "Selfridges of sport”. 

But it’s not only its sports operations that are heading towards the higher-end as its ‘elevation strategy’ is affecting the whole company. The group has been adding new locations for its Flannels chain and is also planning a department store chain just named Frasers with a more upmarket profile.

Mulberry is a major name in the luxury accessories area of department stores in the UK and would undeniably be an asset, despite its struggles with profitability in recent periods. 

A couple of months ago, it announced losses for the latest financial year. This came not long after it had axed its ready-to-wear line and also said it would cut around a quarter of its staff. The company has also forecast losses for the current financial year, although given the pandemic, this is unsurprising.
 

Copyright © 2020 FashionNetwork.com All rights reserved.