Mulberry vs. Frasers: How This Takeover Battle Could Influence Luxury Fashion’s Future

Mulberry, one of the renowned names in luxury fashion, has been in the news recently for rejecting the takeover bid from Frasers. It is an interesting tale of the advantages and pain points the luxury fashion market is facing currently and the tricky M&A market we are in. Hence, it is intriguing to understand Mulberry a little more, what this bid is all about and where the luxury fashion market stands at this moment.

About Mulberry
Mulberry is a global luxury fashion brand with presence across almost all the major cities in the world and runs many exclusive boutiques. It is a British brand offering modern and contemporary fashion. Mulberry’s designs, from handbags and leather accessories to ready-to-wear collections, is consistently appreciated for being timeless and for promoting exceptional craftsmanship. The brand’s rise from a small Somerset boutique to a globally recognised luxury label highlights its lasting appeal and dedication to British heritage. With iconic pieces like The Alexa and The Bayswater, Mulberry has firmly established itself in the world of luxury fashion, captivating audiences worldwide with its refined craftsmanship and classic elegance.

Financial background and the takeover bid
Mulberry was listed on AIM (a sub-segment of the London Stock Exchange) in 1996, possibly before most of the readers were born, and below is how it has performed since inception.


From the above, we can clearly see that despite its strong brand reputation, Mulberry has faced financial challenges in recent years, notably a 4% dip in revenue for the year ending March 2024. These difficulties were compounded by broader issues, such as the post-Brexit elimination of the UK’s tax-free shopping scheme for tourists, which affected luxury sales.
In terms of ownership, Mulberry’s largest shareholder is Challice Limited, a Singapore-based investment firm holding 56.1% of shares (owned by the Singaporean billionaires – Ong family). In contrast, Frasers Group, led by retail tycoon Mike Ashley, began investing in Mulberry shares in 2020 and currently owns 37%. Frasers made an £111m takeover bid to acquire full control of Mulberry in September 2024, but this was rejected by both Mulberry and Challice in the first week of October. They argued that the bid undervalued Mulberry’s future potential, particularly given its efforts to raise £10m for a turnaround plan, led by new CEO Andrea Baldo. While Frasers believes that Mulberry needs rescuing and needs to be more transparent, Challice and other board members of Mulberry believe that the £10m funding and the new CEO have the capability to turn around the business without Frasers’ takeover.

Frasers Group has been steadily increasing its footprint in luxury fashion, having expanded its premium retail offerings through brands like Flannels and Jack Wills, as well as by acquiring stakes in Hugo Boss. Its expansion into the luxury sector is part of a broader strategy to elevate its brand portfolio. A successful acquisition of Mulberry could help Frasers integrate the brand into its high-end retail stores and digital platforms, aligning with its ambitions to dominate the luxury retail space.
However, this bid rejection by Mulberry has stirred a possibility of takeover war i.e. where Frasers could try to bid again or go for a hostile takeover while Mulberry will be on the defensive side – an extreme case but worth following!
Globally, the luxury fashion sector has experienced a wave of M&A activity over the past 5-7 years, driven by consolidation trends, the shift towards sustainability, and digital transformation. Larger conglomerates, like LVMH and Kering, have been expanding their portfolios through acquisitions, looking to integrate high-end craftsmanship with digital commerce platforms (more on the market in the next section).
Mulberry’s rejection of Frasers’ bid reflects a growing trend where smaller, struggling brands resist takeovers in favour of self-reliant recovery plans. However, the rejection doesn’t eliminate the possibility of future acquisitions, particularly if Mulberry’s financial situation worsens, or if Frasers returns with a higher offer. A successful takeover by Frasers could accelerate its transformation into a luxury conglomerate, which would increase competition in a market dominated by giants like LVMH. This deal, if it proceeds, could set a precedent for mid-sized luxury brands partnering with larger retail groups to survive in an increasingly competitive global market.
Mulberry’s strategic resistance highlights the tension between maintaining brand heritage and adapting to modern market demands. If Frasers succeeds, it could spark further consolidation within the industry as luxury brands seek financial backing to compete in a landscape shaped by e-commerce and evolving consumer tastes.
Luxury fashion M&A market overview
In the last 5-7 years, the luxury fashion market has evolved by adopting the concepts of e-commerce, sustainability, changes to consumer demographics and preferences, and some major consolidation.

Market Consolidation and the Dominance of Luxury Conglomerates
Mega-Deals by Major Conglomerates: The luxury fashion industry has seen increased consolidation, with larger conglomerates such as LVMH, Kering, and Richemont actively acquiring smaller, high-growth luxury brands. These mega-deals have been focused on expanding product portfolios, increasing global reach, and tapping into new consumer segments.
- LVMH’s Acquisition of Tiffany & Co. (2019): One of the most notable M&A deals in recent years was LVMH’s acquisition of American jewellery brand Tiffany & Co. for $16.2bn. This acquisition, finalised in 2021 after some delays, marked LVMH’s largest deal ever, strengthening its position in the luxury jewellery sector and expanding its presence in the U.S. market.
- Kering’s Expansion: Kering has also been highly active, focusing on building its portfolio in the high-end jewellery and fashion spaces. After seeing remarkable success with Gucci and Saint Laurent, Kering sought to expand further into categories like fine jewellery with its acquisition of Italian jeweller Pomellato, and other brands. It has also actively expanded into clothing with its recent £1.5bn acquisition of Valentino.
- Richemont: Richemont, known for its strength in luxury watches and jewellery, has continued to enhance its position with acquisitions like Buccellati (2019), an Italian luxury jewellery brand, to broaden its offering. They’ve also recently invested in FarFetch, an e-commerce platform for luxury fashion, demonstrating the importance of e-commerce in the space.
Strategic Portfolio Expansion: These acquisitions are often part of broader strategies to capture new categories (e.g., jewellery, watches, accessories) and geographic markets, particularly emerging economies like China. By adding iconic, high-margin brands, these conglomerates create synergies, gain economies of scale, and enhance bargaining power over suppliers and distributors.
Private Equity Involvement and Interest in Luxury
- Increased Private Equity Activity: Private equity (PE) firms have taken a keen interest in luxury fashion, attracted by the sector’s resilience, profitability, and ability to offer stable returns. PE firms have targeted brands with growth potential, focusing on undercapitalised or undervalued companies that can be repositioned or scaled.
- Advent International’s Stake in Audemars Piguet: In 2021, PE firm Advent International made a significant investment in the Swiss luxury watchmaker, showcasing how PE firms are eyeing high-growth sectors like luxury watches.
- Carlyle Group and Supreme: In 2017, Carlyle Group acquired a 50% stake in Supreme, a streetwear brand that blurred the line between street fashion and luxury, for $500m. This deal highlights the convergence of luxury and youth-driven streetwear fashion, with PE firms leveraging trends that appeal to younger consumers.
- Exit Strategies and Public Offerings: As part of their exit strategies, PE firms have increasingly opted for IPOs (initial public offerings) or sales to large luxury conglomerates. These luxury brands, after being scaled and optimised under PE ownership, often become attractive acquisition targets for global luxury giants. For instance, Supreme was later acquired by VF Corporation for $2.1bn in 2020, delivering a profitable exit for Carlyle.
Focus on Emerging Markets and Geographic Expansion
- Expansion into Asia: A significant part of M&A activity has focused on penetrating or expanding in fast-growing luxury markets, particularly in Asia, and especially in China. Luxury conglomerates and brands have recognised the rising affluence of the Chinese middle class and the younger generation’s increasing appetite for luxury goods. Acquisitions and joint ventures have helped luxury companies gain better market access, local expertise, and a strong consumer base in the region.
- Chinese Investors in Luxury: Chinese investors have also played an increasingly prominent role in luxury M&A. Chinese companies, such as Fosun International, have acquired Western luxury brands to diversify their portfolios and cater to domestic demand. Fosun, for example, acquired a majority stake in French fashion house Lanvin in 2018, as part of its strategy to build a global luxury portfolio.
Tech-Driven Acquisitions and Digital Transformation
- Investment in E-commerce and Tech: The digital transformation of luxury fashion has been a key driver of M&A activity. Luxury brands have been investing heavily in their online sales platforms, digital marketing, and data analytics capabilities to engage more effectively with tech-savvy consumers.
- Farfetch Partnerships and Acquisitions: Online luxury platform Farfetch has played a critical role in the digital transformation of the sector, forming partnerships with brands and investors to enhance its digital offerings. In 2020, Farfetch announced a landmark partnership with Richemont and Alibaba to bolster luxury e-commerce capabilities in China.
- Net-a-Porter and YOOX Merger: In 2015, Richemont merged Net-a-Porter with YOOX to create one of the largest luxury online retailers, now called YOOX Net-a-Porter Group (YNAP). This was a strategic move to dominate luxury e-commerce. Recently, Richemont sold its ownership in YNAP to MyTheresa.
- Acquisition of Digital and Tech Startups: Luxury brands and conglomerates have increasingly acquired tech startups specialising in AI, data analytics, augmented reality, and blockchain technology to enhance digital experiences and connect more effectively with consumers. For example, brands have explored virtual try-ons, NFTs (Non-Fungible Tokens), and digital fashion as new revenue streams.
Sustainability and Ethical Fashion
- Sustainability as a Driver for M&A: Growing consumer demand for sustainability and responsible fashion practices has made sustainability-driven M&A deals more prominent. Luxury fashion houses have been acquiring or partnering with brands that emphasise eco-friendly materials, ethical sourcing, and transparent supply chains to enhance their sustainability credentials.
- LVMH and Stella McCartney: LVMH’s investment in Stella McCartney in 2019, known for her sustainable approach to fashion, highlighted the conglomerate’s focus on incorporating sustainability into its portfolio. This deal was part of a broader trend where large luxury players acquire or partner with brands committed to ethical fashion.
- Circular Economy Initiatives: Luxury brands have also engaged in M&A to tap into the growing second-hand market and circular economy. Platforms like Vestiaire Collective (a second-hand luxury goods marketplace) have received significant investment from traditional luxury houses as they look to incorporate resale into their business models.
Streetwear and New Luxury Segments
- Convergence of Streetwear and Luxury: The past several years have seen the rise of streetwear and its blending with high fashion, leading to acquisitions in this space. As luxury brands seek to stay relevant with younger, urban consumers, they’ve increasingly focused on streetwear labels or brands with a strong youth culture following.
- LVMH and Off-White: In 2021, LVMH acquired a majority stake in Off-White, the streetwear label founded by the late designer Virgil Abloh. This move highlights how streetwear has become a new frontier in luxury fashion, driving fresh revenue streams and keeping brands connected to younger audiences.
- Supreme and VF Corporation: Similarly, VF Corporation’s acquisition of Supreme for $2.1bn in 2020 was a landmark deal showcasing the importance of blending streetwear culture with luxury.
Post-Pandemic Market Resilience
- Pandemic’s Influence on M&A: The COVID-19 pandemic caused short-term disruptions in the luxury market, with store closures and travel restrictions impacting sales. However, luxury fashion proved resilient, and M&A activity rebounded quickly post-pandemic, fuelled by consumer “revenge spending” and a strong desire for luxury goods.
- M&A Surge Post-COVID: As luxury companies sought to recover and grow, they turned to M&A to strengthen their balance sheets, enhance digital capabilities, and acquire competitors to regain lost ground. Deals like the LVMH-Tiffany acquisition, delayed due to the pandemic, eventually closed as luxury companies pursued long-term growth strategies.

Road ahead for the Luxury Fashion M&A market
The rejection of Frasers Group’s takeover bid by Mulberry illustrates a significant moment for both brands and the luxury fashion sector. For Mulberry, it highlights its determination to preserve its heritage and its faith in a self-led recovery plan. Frasers Group, meanwhile, continues its aggressive expansion into the luxury space, and the rejected offer could spark further takeover attempts or even a hostile bid. This move also reflects broader trends in the luxury fashion industry where conglomerates are acquiring iconic but struggling brands to remain competitive. As M&A activity intensifies, brands like Mulberry face difficult decisions about maintaining independence versus joining larger, financially stable groups. The outcome of this bid may signal further shifts in the global luxury market as sustainability, digital transformation, and emerging consumer markets continue to reshape the industry’s future.
Sources: Bloomberg, Financial Times, Vogue Business, The Fashion Law, Fashion Law Journal, London Stock Exchange, Mulberry website, Yahoo Finance
Disclaimer:
This article is intended for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed are based on publicly available information and analysis at the time of writing. The author does not endorse or advocate for any particular outcome regarding the Mulberry-Frasers Group takeover bid. Readers should consult with professional advisors for advice specific to their individual circumstances. All information is sourced from publicly available materials, including company reports, press releases, and reputable news outlets, as of the date of publication.
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