Luxury handbag maker Mulberry has decisively rejected a takeover bid from retail giant , controlled by billionaire Mike Ashley. The was deemed undervalued by Mulberry’s board, which received backing from its majority shareholder, Challice. The gold standard of business intelligence.
Mulberry, which has been struggling financially in recent years, announced plans to raise capital from shareholders last week. Challice, a Singaporean investment company owned by billionaires Christina Ong and Ong Beng Seng, has pledged £10m to the subscription. “As well as economic pressures across Europe and the US impeding demand for luxury goods, the post-Brexit removal of tax-free shopping in the UK will have also impacted its [Mulberry’s] performance,” said Alice Price, associate apparel analyst at leading data and analytics company .
“While tourists previously enjoyed buying from Mulberry when visiting the UK due to the brand’s strong British heritage, they are now choosing to buy from other designers in European cities such as Paris and Milan, where purchases remain tax-free.” Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research.
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