Latest news with #ChalliceLimited
Yahoo
11-07-2025
- Business
- Yahoo
Mulberry raises $27M to accelerate turnaround strategy
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Mulberry Group announced a 20 million pound fundraising round, or about $27 million, which it plans to use to accelerate its growth strategy, according to a Thursday press release. The funding is through major shareholders Challice Limited and Frasers Group, in the form of 20 million convertible loan notes. The deal is subject to a shareholder vote at the company's general meeting at the end of the month. Mulberry is also undertaking another offer of more than 1.26 million ordinary shares to allow minority shareholders in the U.K. to participate in the company's fundraising activities, per the release. Adding this option protects it from the 'potential dilutive impact' of Challice and Frasers, the company said. At the beginning of this year, Mulberry announced a new plan to restore profitability dubbed 'Back to the Mulberry Spirit,' which called for simplification, brand realignment and enhanced customer connection. However, due to what the company called 'challenging trading conditions' at the macro level, Mulberry Group's board concluded it needed more funding to reach its desired financial targets. Mulberry announced the fundraising at the same time it reported its annual results for the fiscal year that ended March 29, in which the group's revenue fell 21% to 120.4 million pounds. The company attributed this decline to challenging macroeconomic conditions. Securing the funding from the company's two largest shareholders would be the most effective way to minimize cost and increase certainty, Mulberry said. The funding is structured to ensure that proceeds from the deal will be 'put to work as soon as possible.' Additionally, the proceeds are expected to make Mulberry cash flow positive, per the release. Mulberry intends to rebuild its core product families, boost sell-through, and invest in new revenue streams, including outlets and its wholesale channel, per the release. The company will also use the money to market in its primary markets of the U.K. and U.S., as well as upgrade its e-commerce tools. For the quarter that ended June 1, group revenue declined by 18% in the retail, digital and wholesale channels, which the company said was in line with its expectations. For the rest of the year, the company plans to focus on optimizing its portfolio. It added that its wholesale segment is positioned for growth in the fiscal year. Last year, the Mulberry Group, along with Challice, rejected Frasers' acquisition attempt. The Mulberry board said at the time that Frasers' offer was untenable and that Mulberry would focus instead on driving commercial performance. Recommended Reading Mulberry to adjust prices as it seeks revenue turnaround Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
10-07-2025
- Business
- Fashion Network
Mulberry secures £20 million as sales fall 21% and transformation plan begins
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 United
23-06-2025
- Business
- Fashion United
Mulberry eyes 20 million pound fundraise as transformation plan progresses
British brand Mulberry is looking to raise 20 million pounds of additional capital in a fundraising to back its growth strategy as its ongoing transformation plan progresses. It comes 'in light of an even more challenging trading environment seen at a macro level', the group noted. In a regulatory filing, the luxury accessory label said, with the fundraising, its main priorities included rebuilding core stocks; investing in new accretive revenue streams, such as outlets and wholesale; select marketing spend within the UK and US; and upgrading existing customer engagement. Mulberry's majority shareholder Challice Limited said it was willing to underwrite, in full, the fundraising, which is expected to complete in July 2025. The board has also been engaging with the company's other major shareholder, Frasers Group, in order to reach a final structure and agreement of the fundraising. Mulberry has received approval for a request made to HSBC UK Bank to relax the minimum liquidity covenant for an agreed period until the fundraising is complete, releasing around 6.5 million pounds to the company. An affiliate of Challice has further entered into a cash backed guarantee matching the increased covenant headroom. Losses anticipated to marginally narrow in FY25 The news comes as Mulberry reported that it is expecting revenues in the region of 120 million pounds for FY25, down from 152.8 million pounds in the year prior, with an underlying loss before tax of around 23 million pounds, narrowing from the prior 22.6 million pounds. Trading in the first 11 weeks of the fiscal year is 'in line' with expectations. Its audited financial statements are scheduled for July 2025. Mulberry's pursuit of fundraising comes amid a wider transformation strategy, 'Back to the Mulberry spirit', which has set out to simplify and streamline operations, reduce cost base and refresh the brand platform. Since January, when the plan was introduced, the company has made changes to its management team, established new wholesale agreements in the UK and US, launched a '4 seasons' approach and reviewed its store estate, resulting in the closure of non-profitable stores. In a statement, Andrea Baldo, chief executive officer of Mulberry, said the company was 'firmly in turnaround mode – focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives'. Baldo continued: '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."
