Mike Ashley's Frasers Group makes bid for Mulberry

Luxury handbag shaper Mulberry has received a takeover attack from Mike Ashley's Frasers Group.

The connection values Mulberry, which has seen income autumn sharply pursuing a downturn successful the luxury sector, astatine £83m.

Frasers Group, which owns respective chains including Sports Direct, Flannels and Evans Cycles, already holds a 37% involvement successful the firm.

Its takeover determination followed an announcement by Mulberry connected Friday that it was seeking to rise £10m to bolster its finances.

But successful a connection connected Monday, Frasers said it had lone been made alert of this program to rise funds “immediately anterior to its announcement”.

"Given this full deficiency of engagement, we judge the presumption quo to beryllium an untenable presumption for Frasers and the different number holders of Mulberry shares," it said.

Frasers added that with its "leading retail expertise and presence... we judge Frasers to beryllium the champion steward for returning Mulberry to profitability".

"As a 37% shareholder, Frasers volition not judge different Debenhams concern wherever a perfectly viable concern is tally into administration."

Susannah Streeter, caput of wealth and markets astatine Hargreaves Lansdown, said: "Mike Ashley’s vexation with Mulberry is plain to see.

"Keeping it quiescent indicates that the [Mulberry] committee didn’t privation to springiness Frasers the aboriginal enactment of owning an adjacent bigger chunk of the company.

"However, investors whitethorn besides beryllium losing patience, fixed that Mulberry’s shares person fallen by 52% implicit the past year."

Ms Streeter said Frasers Group had already taken steps to "move upmarket", specified arsenic expanding its involvement successful Hugo Boss.