Luxury news

The department store chain already owns a third stake in the luxury brand

Mike Ashley’s Frasers Group Plc has made a revised offer to buy the whole of Mulberry Group Plc after the British handbag maker declined an initial offer.

Frasers, which already owns 37 percent of Mulberry, has submitted a non-binding indicative offer of 150 pence per share for the remaining capital, valuing the company at around €133 million, according to a statement on Friday. Mulberry’s market capitalization currently stands at €95 million.

The offer is an increase on Frasers’ previous offer of 130 pence per share, which Mulberry says undervalues ​​the company and lacks the support of Singapore’s Ong family, its majority shareholder.

Shares in Mulberry have fallen almost 14 per cent since Frasers’ bid declined earlier this month, taking the shares’ fall to more than 40 per cent in the past 12 months. The handbag maker has been hit hard by the global luxury spending crisis, reporting a fall in revenue for the last fiscal year.

Frasers said it had not received a response to the revised proposal from Mulberry’s board.

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Mulberry recently announced that it had received B Corp certification – a milestone in the brand’s drive to become a regenerative and circular model.

B Corp is a rigorous social and environmental framework, requiring a detailed assessment of each part of the business against five key impact areas: governance, workers, community, environment and customers. Certification generally reflects when a brand meets high standards in these areas.

B Corp certification requires a score of 80. Mulberry scored 87.1, earning notable points and unlocking impact business models, the way a company is designed to create a specific positive benefit, in the category Environment. Mulberry sources 100% of its leather from certified eco-friendly tanneries, while also accepting pre-owned Mulberry bags through Mulberry Exchange and allowing customers to use their value against a new purchase.

With additional reporting from Bloomberg.