Latest news with #Challice
Reuters
10-07-2025
- Business
- Reuters
Handbag maker Mulberry raises $27 million from top investors
July 10 (Reuters) - Britain's Mulberry (MUL.L), opens new tab said on Thursday it has raised 20 million pounds ($27.14 million) through convertible debt from its two biggest shareholders as it seeks to bolster operations and support growth. Shares of Mulberry fell 5.1% to 92.5 pence apiece by 1309 GMT. The high-end luxury bag maker also reported an 18% fall in group revenue for the nine weeks ended June 1, as rising inflation and broad economic uncertainties continue to weigh on consumer spending. Like its larger rival Burberry (BRBY.L), opens new tab, Mulberry is also refocusing on its 'British heritage' to resonate with domestic consumers, reversing a recent pivot it took to expand into the Asia-Pacific market. The company issued new convertible loan notes to the two investors, the company said, adding that it plans to raise an additional 1.2 million pounds from other minority shareholders through an offering of ordinary shares. Challice is Mulberry's biggest shareholder with a 56.43% stake, followed by Frasers' (FRAS.L), opens new tab 37.05%, according to LSEG data. "The board has concluded that the fundraising and the retail offer are in the best interests of all stakeholders and will promote the success of the company," Mulberry said, as it also appointed Frasers executive James France to its board. The company on Thursday reported a 21% drop in fiscal 2025 revenue to 120.4 million pounds and underlying pretax loss of 23.7 million pounds, in line with its own forecasts given in June, when it had also announced the fundraising plans. ($1 = 0.7370 pounds)
Fashion Network
10-07-2025
- Business
- Fashion Network
Mulberry secures £20 million as sales fall 21% and transformation plan begins
British luxury brand Mulberry, renowned for its leather handbags, reported a 21% drop in annual revenue on Thursday and confirmed it had secured £20 million in funding — an amount it had previously targeted — with backing from its two largest shareholders, Challice and Frasers Group. The company's shares fell by approximately 5% following the announcement. Mulberry also announced that James France, an executive at Frasers Group, will join its board of directors as a non-executive director, effective 30 July — signalling a possible shift in governance as the brand pursues its transformation strategy. For the 52 weeks ended 29 March 2025, Mulberry recorded revenue of £120.4 million, down from £152.8 million the previous year. The brand also posted an underlying loss before tax of £23.7 million, slightly wider than the £22.6 million loss recorded the year prior. The newly secured capital will accelerate Mulberry's 'Back to the Mulberry Spirit' transformation plan, which aims to streamline operations, reduce costs, and close 12 underperforming stores across Asia. The brand also intends to reinforce its wholesale strategy by expanding partnerships with premium department stores in the U.K., U.S., and Australia. Mulberry expects to achieve £5.9 million in annualised cost savings. It has also secured £6.5 million in liquidity relief from HSBC UK, matched by a guarantee from Challice Limited, one of its major shareholders. For the nine weeks to 1 June 2025, the group's revenue declined by 18% year-on-year, with retail and digital sales falling by 17%. However, Mulberry noted early signs of stabilisation in key markets including the UK and North America. Chief executive officer Andrea Baldo is leading the brand's renewed focus on its British heritage, aiming to reconnect with loyal domestic customers. This heritage-driven repositioning forms part of a broader plan to drive revenue beyond £200 million and reach a medium-term adjusted earnings-before-interest-and-tax (EBIT) margin of 15%.
Fashion Network
10-07-2025
- Business
- Fashion Network
Mulberry secures $27 million as sales fall 21% and transformation plan begins
By Reuters Published July 10, 2025 British luxury brand Mulberry, known for its leather handbags, reported a 21% drop in annual revenue on Thursday and confirmed it had secured $27 million in funding — an amount it had previously targeted — with backing from its two largest shareholders, Challice and Frasers Group. Challice and Frasers back Mulberry with $27 million capital injection - Reuters The company's shares fell by approximately 5% following the announcement. Mulberry also announced that James France, an executive at Frasers Group, will join its board of directors as a non-executive director, effective July 30 — signaling a possible shift in governance as the brand pursues its transformation strategy. Ads For the 52 weeks ended March 29, 2025, Mulberry recorded revenue of $160.3 million, down from $203.2 million the previous year. The brand also posted an underlying loss before tax of $31.5 million, slightly wider than the $30 million loss recorded the year newly secured capital will accelerate Mulberry's 'Back to the Mulberry Spirit' transformation plan, which aims to streamline operations, reduce costs, and close 12 underperforming stores across Asia. The brand also intends to reinforce its wholesale strategy by expanding partnerships with premium department stores in the U.K., U.S., and Australia. Mulberry expects to achieve $7.8 million in annualized cost savings. It has also secured $8.8 million in liquidity relief from HSBC UK, matched by a guarantee from Challice Limited, one of its major shareholders. For the nine weeks to June 1, 2025, the group's revenue declined by 18% year over year, with retail and digital sales falling by 17%. However, Mulberry noted early signs of stabilization in key markets including the U.K. and North Executive Officer Andrea Baldo is leading the brand's renewed focus on its British heritage, aiming to reconnect with loyal domestic heritage-driven repositioning forms part of a broader plan to drive revenue beyond $269.8 million and reach a medium-term adjusted earnings-before-interest-and-tax (EBIT) margin of 15%.($1 = £0.74) with Reuters © Thomson Reuters 2025 All rights reserved.
Fashion Network
10-07-2025
- Business
- Fashion Network
Mulberry secures £20 million as sales fall 21% and transformation plan begins
British luxury brand Mulberry, renowned for its leather handbags, reported a 21% drop in annual revenue on Thursday and confirmed it had secured £20 million in funding — an amount it had previously targeted — with backing from its two largest shareholders, Challice and Frasers Group. The company's shares fell by approximately 5% following the announcement. Mulberry also announced that James France, an executive at Frasers Group, will join its board of directors as a non-executive director, effective 30 July — signalling a possible shift in governance as the brand pursues its transformation strategy. For the 52 weeks ended 29 March 2025, Mulberry recorded revenue of £120.4 million, down from £152.8 million the previous year. The brand also posted an underlying loss before tax of £23.7 million, slightly wider than the £22.6 million loss recorded the year prior. The newly secured capital will accelerate Mulberry's 'Back to the Mulberry Spirit' transformation plan, which aims to streamline operations, reduce costs, and close 12 underperforming stores across Asia. The brand also intends to reinforce its wholesale strategy by expanding partnerships with premium department stores in the U.K., U.S., and Australia. Mulberry expects to achieve £5.9 million in annualised cost savings. It has also secured £6.5 million in liquidity relief from HSBC UK, matched by a guarantee from Challice Limited, one of its major shareholders. For the nine weeks to 1 June 2025, the group's revenue declined by 18% year-on-year, with retail and digital sales falling by 17%. However, Mulberry noted early signs of stabilisation in key markets including the UK and North America. Chief executive officer Andrea Baldo is leading the brand's renewed focus on its British heritage, aiming to reconnect with loyal domestic customers. This heritage-driven repositioning forms part of a broader plan to drive revenue beyond £200 million and reach a medium-term adjusted earnings-before-interest-and-tax (EBIT) margin of 15%.
South Wales Guardian
20-06-2025
- 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.
