Latest news with #Baldo
South Wales Guardian
9 hours ago
- Business
- South Wales Guardian
Mulberry in talks over £20m cash-call as losses widen
The Somerset-based firm said it was launching the cash-call after a 'post-2024-25 year-end review by the executive management, and in light of an even more challenging trading environment'. It added: 'The board has concluded that the company will require additional capital to fund its growth strategy and achieve its desired financial targets.' Shares in the firm plunged 11% in Friday afternoon trading. Mulberry said it was in discussions with majority shareholder Challice – a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng – and major stakeholder Mike Ashley's Frasers Group over the fundraising. It comes as Mulberry expects to slump to an underlying pre-tax loss of around £23 million for the year to March 29 against losses of £22.6 million the previous year. The group is set to report annual revenues tumbling 21% to around £120 million, adding that it does expect 'material overall revenue growth' in the new financial year. Andrea Baldo, chief executive of Mulberry, said the group had taken action to overhaul the business and cut costs as part of plans laid out in January, including shutting some stores. It already axed around 85 jobs in the run-up to Christmas – around a quarter of its workforce – largely impacting head office workers. Mr Baldo said: 'In the near term, we are firmly in turnaround mode, focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives.' He added: 'We've taken action to reduce costs – restructuring head office and exiting unprofitable stores, delivering a lower run-rate cost base into 2025-26. 'Following our year-end review, the board and I are confident that, with additional funding, we can accelerate momentum and deliver against our targets at pace.' The firm said shareholder Challice was willing to underwrite the fundraising in full, but Mulberry said it hoped Frasers would also take part. 'Whilst these discussions are ongoing, the board notes that it may not be possible for all parties to agree fully on the structure of the fundraising, in which case the board… will conclude on the most appropriate structure for the company,' Mulberry said. It expects to complete the fundraising in July, to coincide with the publication of its annual results. Mr Baldo, who joined the group in September last year from Ganni, is restructuring the business with a focus on the UK market, rather than China, under aims to turn around its fortunes. Founded in 1971 in Somerset, Mulberry is most famous for its luxury, leather handbags. But it has seen trading hit hard in recent years, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. Mr Baldo said, in January, the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future.
Glasgow Times
9 hours ago
- Business
- Glasgow Times
Mulberry in talks over £20m cash-call as losses widen
The Somerset-based firm said it was launching the cash-call after a 'post-2024-25 year-end review by the executive management, and in light of an even more challenging trading environment'. It added: 'The board has concluded that the company will require additional capital to fund its growth strategy and achieve its desired financial targets.' Shares in the firm plunged 11% in Friday afternoon trading. Mulberry said it was in discussions with majority shareholder Challice – a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng – and major stakeholder Mike Ashley's Frasers Group over the fundraising. It comes as Mulberry expects to slump to an underlying pre-tax loss of around £23 million for the year to March 29 against losses of £22.6 million the previous year. The group is set to report annual revenues tumbling 21% to around £120 million, adding that it does expect 'material overall revenue growth' in the new financial year. Andrea Baldo, chief executive of Mulberry, said the group had taken action to overhaul the business and cut costs as part of plans laid out in January, including shutting some stores. It already axed around 85 jobs in the run-up to Christmas – around a quarter of its workforce – largely impacting head office workers. Mr Baldo said: 'In the near term, we are firmly in turnaround mode, focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives.' He added: 'We've taken action to reduce costs – restructuring head office and exiting unprofitable stores, delivering a lower run-rate cost base into 2025-26. 'Following our year-end review, the board and I are confident that, with additional funding, we can accelerate momentum and deliver against our targets at pace.' The firm said shareholder Challice was willing to underwrite the fundraising in full, but Mulberry said it hoped Frasers would also take part. 'Whilst these discussions are ongoing, the board notes that it may not be possible for all parties to agree fully on the structure of the fundraising, in which case the board… will conclude on the most appropriate structure for the company,' Mulberry said. It expects to complete the fundraising in July, to coincide with the publication of its annual results. Mr Baldo, who joined the group in September last year from Ganni, is restructuring the business with a focus on the UK market, rather than China, under aims to turn around its fortunes. Founded in 1971 in Somerset, Mulberry is most famous for its luxury, leather handbags. But it has seen trading hit hard in recent years, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. Mr Baldo said, in January, the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future.
Rhyl Journal
10 hours ago
- Business
- Rhyl Journal
Mulberry in talks over £20m cash-call as losses widen
The Somerset-based firm said it was launching the cash-call after a 'post-2024-25 year-end review by the executive management, and in light of an even more challenging trading environment'. It added: 'The board has concluded that the company will require additional capital to fund its growth strategy and achieve its desired financial targets.' Shares in the firm plunged 11% in Friday afternoon trading. Mulberry said it was in discussions with majority shareholder Challice – a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng – and major stakeholder Mike Ashley's Frasers Group over the fundraising. It comes as Mulberry expects to slump to an underlying pre-tax loss of around £23 million for the year to March 29 against losses of £22.6 million the previous year. The group is set to report annual revenues tumbling 21% to around £120 million, adding that it does expect 'material overall revenue growth' in the new financial year. Andrea Baldo, chief executive of Mulberry, said the group had taken action to overhaul the business and cut costs as part of plans laid out in January, including shutting some stores. It already axed around 85 jobs in the run-up to Christmas – around a quarter of its workforce – largely impacting head office workers. Mr Baldo said: 'In the near term, we are firmly in turnaround mode, focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives.' He added: 'We've taken action to reduce costs – restructuring head office and exiting unprofitable stores, delivering a lower run-rate cost base into 2025-26. 'Following our year-end review, the board and I are confident that, with additional funding, we can accelerate momentum and deliver against our targets at pace.' The firm said shareholder Challice was willing to underwrite the fundraising in full, but Mulberry said it hoped Frasers would also take part. 'Whilst these discussions are ongoing, the board notes that it may not be possible for all parties to agree fully on the structure of the fundraising, in which case the board… will conclude on the most appropriate structure for the company,' Mulberry said. It expects to complete the fundraising in July, to coincide with the publication of its annual results. Mr Baldo, who joined the group in September last year from Ganni, is restructuring the business with a focus on the UK market, rather than China, under aims to turn around its fortunes. Founded in 1971 in Somerset, Mulberry is most famous for its luxury, leather handbags. But it has seen trading hit hard in recent years, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. Mr Baldo said, in January, the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future.
Western Telegraph
10 hours ago
- Business
- Western Telegraph
Mulberry in talks over £20m cash-call as losses widen
The Somerset-based firm said it was launching the cash-call after a 'post-2024-25 year-end review by the executive management, and in light of an even more challenging trading environment'. It added: 'The board has concluded that the company will require additional capital to fund its growth strategy and achieve its desired financial targets.' Shares in the firm plunged 11% in Friday afternoon trading. Mulberry said it was in discussions with majority shareholder Challice – a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng – and major stakeholder Mike Ashley's Frasers Group over the fundraising. It comes as Mulberry expects to slump to an underlying pre-tax loss of around £23 million for the year to March 29 against losses of £22.6 million the previous year. The group is set to report annual revenues tumbling 21% to around £120 million, adding that it does expect 'material overall revenue growth' in the new financial year. Andrea Baldo, chief executive of Mulberry, said the group had taken action to overhaul the business and cut costs as part of plans laid out in January, including shutting some stores. It already axed around 85 jobs in the run-up to Christmas – around a quarter of its workforce – largely impacting head office workers. Mr Baldo said: 'In the near term, we are firmly in turnaround mode, focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives.' He added: 'We've taken action to reduce costs – restructuring head office and exiting unprofitable stores, delivering a lower run-rate cost base into 2025-26. 'Following our year-end review, the board and I are confident that, with additional funding, we can accelerate momentum and deliver against our targets at pace.' The firm said shareholder Challice was willing to underwrite the fundraising in full, but Mulberry said it hoped Frasers would also take part. 'Whilst these discussions are ongoing, the board notes that it may not be possible for all parties to agree fully on the structure of the fundraising, in which case the board… will conclude on the most appropriate structure for the company,' Mulberry said. It expects to complete the fundraising in July, to coincide with the publication of its annual results. Mr Baldo, who joined the group in September last year from Ganni, is restructuring the business with a focus on the UK market, rather than China, under aims to turn around its fortunes. Founded in 1971 in Somerset, Mulberry is most famous for its luxury, leather handbags. But it has seen trading hit hard in recent years, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. Mr Baldo said, in January, the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future.
Yahoo
30-01-2025
- Business
- Yahoo
Mulberry has ‘neglected to connect' with UK shoppers, says boss
Struggling luxury bag maker Mulberry has 'neglected to connect' with British customers in recent years and plans to sell more bags in the UK, rather than China, to make the company profitable again. Chief executive Andrea Baldo told the PA news agency the company has 'lost so much business' in the UK in recent years that there is 'a huge space' for the company to grow. Founded in 1971, London-based Mulberry is most famous for its luxury leather handbags. But it has seen profits nosedive of late, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. Mr Baldo said the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future. It will also re-enter the wholesale and outlet sales markets, including by striking new deals to sell its items at John Lewis and Flannels. Mulberry has no presence in Birmingham or Liverpool, he said, and it will look to expand in those cities in future. The UK expansion comes after retailers such as Marks & Spencer have warned that rising company taxes and falling consumer sentiment could hit their home market. While Mr Baldo admitted those factors are 'a challenge', he added: 'With the right product, distribution and communication, we are able to take advantage (of the UK market) no matter where the economic conditions are.' Mr Baldo, who joined last year from luxury brand Ganni, wants the company to focus on its 'Britishness' and 'cultural relevance' and simplify the business to counter plunging profits. He laid out plans to cut costs by a quarter compared with the last financial year, following a period of 'suboptimal' performance. Mr Baldo also said Mulberry will look to expand in the US. The company made nearly one-fifth less in revenue over the key Christmas period than the previous year, blaming a 'challenging' business environment. That was even worse in Asia, where sales slumped by 28% compared with the festive period in 2023. In Europe and the US, by contrast, sales grew 11% year-on-year. Mr Baldo said: 'We need to get back to where we came from and return to the spirit of Mulberry.' He added that for the company to succeed 'the business model needs to be simplified'. Mulberry already announced plans to slash roughly 85 jobs, about one quarter of its workforce, before Christmas. The turnaround plan comes after loss-making Burberry also said it would focus more on its British history to make more sales. Meanwhile, Mulberry has also hired a new finance head, Billie O'Connor, a former Marks & Spencer and Selfridges executive. Mr Baldo said: 'Billie has a wealth of experience working in the consumer retail space and has spent time leading finance teams through turnarounds.'
