Mulberry, the renowned luxury leathergoods firm, has firmly rejected Frasers Group’s attempts to secure a board seat for founder Mike Ashley. While acknowledging Ashley’s importance as a shareholder and successful businessman, Mulberry’s CEO Thierry Andretta has asserted that Ashley lacks the necessary expertise to contribute to the company’s growth. Instead, Mulberry is actively seeking an independent non-executive director who possesses international experience and aligns with the company’s strategic vision.
For Frasers Group, their request for a board seat is understandable, given their significant 36.8% stake in Mulberry. However, the company is predominantly controlled by Malaysian billionaire Ong Beng Seng and his wife Christina, who hold over 56% of the company, dwarfing Frasers’ stake. Recently, Ashley met with Mulberry’s board to express his frustrations with the lack of transparency surrounding the Asian business of the brand. Mulberry operates in Asia through a joint venture with Singapore-based Chalice, which is also controlled by the Ongs. Ashley seeks further insights into the workings of the joint venture and the benefits it provides to the Ongs.
In its latest annual results, Mulberry reported an increase in sales, yet a decrease in profits. The company attributes this decline to the end of VAT-free shopping for tourists in the UK, which has negatively impacted the luxury sector. Notwithstanding this setback, Mulberry remains optimistic as it continues to observe rising sales in the current fiscal year.
While Frasers Group’s request for a board seat has not materialized, it underscores their significant stake in Mulberry. However, Mulberry’s primary focus remains on securing a director with the requisite expertise and international experience necessary to drive the company’s growth. As Mulberry perseveres through challenges within the luxury sector, it will be fascinating to witness the evolution of the company under its current leadership.
Useful Links:
1. Mulberry Official Website
2. Frasers Group Official Website
