Fraser handbagging costs Mulberry £3m

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Mulberry is an unsecured creditor owed £2.4million by the department store, which went into administration earlier this month before being bought by retailer Mike Ashley’s Sports Direct for £90million. It is one of a number of suppliers likely to lose multi-million pounds as Sports Direct is not obliged to pay money owed.

Mulberry, led by chief executive Thierry Andretta, said trading had remained “challenging” over the past few weeks, with sales in House of Fraser stores particularly affected.

Business has suffered due to fewer tourists visiting Britain this year, with its UK retail sales down by 9 per cent in the 10 weeks to June 2.

It warned: “If these sales trends in the UK continue into the key trading period of the second half of the financial year, the group’s profit for the whole year will be materially reduced.”

Shares plunged 169p to 400p, their lowest for nearly eight years.

Mulberry has sought to strengthen its international presence, particularly in Asia, in the face of deteriorating conditions on the UK high street, through joint venture deals in Japan and South Korea.

Markets.com chief market analyst Neil Wilson said: “House of Fraser is the symptom rather than the cause, but its failure is just making the pressure on these brands tougher.

“The task is to shift the sales mix away from the UK and towards the international market.”

London-based luxury fashion e-commerce firm Farfetch has announced plans to float on the New York Stock Exchange.

Andretta The company, yet to turn a profit in its 10-year history, could command a valuation of £4billion.

Its annual revenue was nearly $ 386million (£302million) last year, up from the $ 242million in 2016.

It struck a deal with Burberry this year enabling shoppers in 150 countries to access the retailer’s ranges.

Daily Express :: City and Business Feed

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