Mulberry was valued at £83 million by Frasers, which is a company primarily owned by the tycoon and is well-known for its Sports Direct brand. The offer was made on Monday.
It stated that it was taking action to avoid “another Debenhams situation” after ostensibly being unaware of Mulberry’s attempt to raise money last Friday.
The handbag-maker Mulberry, which has been struggling with poor demand amidst the worldwide luxury slump, disclosed last week that the difficulties had caused it to plunge precipitously into the red for its most recent fiscal year.
A cautionary note about the downturn’s potential to create a “material uncertainty which may cast significant doubt on the group and parent company’s ability to continue as a going concern” was included in its annual accounts.
The deal, it further noted, did not have the support of its largest shareholder.
According to Mulberry, the strategy was developed with Challice, a Singaporean company run by billionaire Ong Beng Seng and his wife Christina.
The company said it will continue with its preparations for a capital raise and trusted newly hired Chief Executive Andrea Baldo to lead a turnaround.
