Mulberry seeks £20m lifeline as sales plummet

Mulberry is in talks to raise more than £20m as it presses ahead with a plan to stem falling sales.

The luxury handbag label said it was speaking to investors about new funding due to an ‘even more challenging trading environment’.

Discussions have involved majority shareholders Singaporean billionaire Christina Ong and husband Ong Beng Seng, who own a 56 per cent slice of the group. Mike Ashley’s Frasers Group, which owns 36 per cent, is also part of talks.

Mulberry boss Andrea Baldo is attempting to return the firm to the glory days of Brit-Chic, when its Alexa bag was an It Girl must-have accessory.

But the group also said it believes it slumped to a loss of around £23m in the year to March 29, compared to a loss of £22.6m the previous year. 

Annual sales look to have plunged 21 per cent to around £120m as Chinese shoppers reined back spending on pricey goods amid economic turbulence.

The group has already shut some unprofitable stores and axed some head office jobs this year. Shares plunged 11.1 per cent.

Baldo said: ‘We are firmly in turnaround mode, focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives.’