Frasers Group, the largest shareholder of luxury brand Mulberry, is reportedly taking steps to secure a position on the company’s board of directors. Currently holding a 37% stake in Mulberry, Frasers Group aims to challenge the control of Singapore-based Ong Beng Seng and his wife Christina, who currently possess a majority stake of 56% in the company. The Telegraph reports that representatives from Frasers Group recently met with Mulberry’s chairman and CEO to request boardroom representation. However, a decision has not yet been reached.
While Frasers Group has chosen not to comment on the situation, a spokesperson from Mulberry stated that the company maintains a constructive dialogue with all shareholders and does not publicly discuss specific conversation details. Given Frasers Group’s significant investment in Mulberry, it is reasonable for them to seek a presence in the boardroom. However, The Telegraph suggests that Frasers Group has grown frustrated with what it perceives as a lack of transparency regarding Mulberry’s business in Asia. Since 2017, Mulberry has had a partnership with a company controlled by Ong, aimed at driving growth in the Asian market. Frasers Group is reportedly seeking more transparency regarding this arrangement.
Mulberry recently reported decreased sales and a shift from a small profit to an underlying pre-tax loss in its most recent half-year results. Frasers Group’s investment in Mulberry coincides with the expansion of its luxury operations through its Flannels luxury store chain, which also carries the Mulberry brand. Frasers Group has also made investments in other high-end brands like Hugo Boss.
The outcome of Frasers Group’s attempts to secure a place on Mulberry’s board of directors remains uncertain. However, it is clear that this development could significantly impact the luxury brand’s future direction.
Links:
– The Telegraph: Frasers Group enters boardroom battle with Mulberry
– Reuters: Mulberry ‘branded’ by Mike Ashley
