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Luxury handbag maker Mulberry has received a takeover approach from Mike Ashley’s Frasers Group.<\/p>\n
The offer values Mulberry, which has seen sales fall sharply following a downturn in the luxury sector, at \u00a383m.<\/p>\n
Frasers Group, which owns several retailers including Sports Direct, Flannels and Evans Cycles, already holds a 37% stake in the firm.<\/p>\n
The proposal deal follows an announcement by Mulberry on Friday that it needed to raise nearly \u00a311m to bolster its finances.<\/p>\n<\/div>\n
Frasers said on Monday that it had only been made aware of the plan to raise funds \u201cimmediately prior to its announcement\u201d.<\/p>\n
“Given this total lack of engagement, we believe the status quo to be an untenable position for Frasers and the other minority holders of Mulberry shares,” it said.<\/p>\n
Frasers added that it was also “exceptionally concerned” at an opinion by its auditor in its annual report, published on Friday, which noted there was “material uncertainty related to going concern”.<\/p>\n
It said: “As a 37% shareholder, Frasers will not accept another Debenhams situation where a perfectly viable business is run into administration.”<\/p>\n