The new boss of the fashion firm said he is simplifying the business in order to make it “leaner” as part of a strategic overhaul and help drive a return to profit. Andrea Baldo, who was appointed chief executive, told the PA news agency that the business has cut 85 roles as part of the shake-up. The cuts, which impact about a quarter of its 350-strong workforce, have predominantly impacted its London design headquarters, as well as some Somerset office workers.
It is part of a strategic review, due to conclude next month, which will also see a shift in the company’s pricing and distribution strategies. Mr Baldo told PA he hopes to “reinvigorate” the brand by focusing on its “affordable luxury” price position and said it will seek to return to growth in the UK, a market he said the business had “underappreciated” in its previous strategy. The Somerset company, which was recently the target of takeover efforts by shareholder Frasers Group, is among firms to have been hit hard by a sharp slowdown in luxury spending.
Mulberry told shareholders that group revenues fell by 19% to £56.1 million for the six months to September 28. It said trading was challenging over the half-year in the face of a “difficult trading environment and uncertain macroeconomic trends”.
Revenues from its wholesale and franchise business dived by 46% to £5.4 million as it was particularly affected by partners in Italy and Denmark reducing their orders due to tough conditions. Elsewh.