Struggling Mulberry to raise £20m amid losses

STRUGGLING luxury handbag maker Mulberry has revealed talks to raise more than £20 million as the group warned over widening annual losses and worsening trading conditions.

- HOLLY WILLIAMS

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 yesterday 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 £23m for the year to March 29 against losses of £22.6m the previous year.