Bags at dawn: Ashley taken down by Singapore billionaires in battle over Mulberry

Mike Ashley faces stiff opposition from billionaire investors in Singapore as he fights to take control of Mulberry.

The tracksuit magnate, whose Frasers Group is the British fashion house’s second-largest shareholder with a 37 per cent stake, this week launched a bid to buy the entire company in a deal that would value it at £83 million.

But Mulberry firmly rejected his approach yesterday following discussions between the board and the largest shareholder, the Ong family’s Challice group, which has a controlling 56 percent stake.

Mulberry made it clear that Ong Beng Seng, 80, and his wife Christina, 77, a Singaporean power couple, have “no interest” in Fraser’s bid.

The rebuttal set the stage for a battle of wills between Ashley and the Ongs over the future of the troubled company.

Mulberry, known for its handbags and other leather goods, has been hit in recent years by a slowdown in demand for luxury goods.

But in rejecting Ashley’s proposals yesterday, the board said it believes there is a “solid platform” to “execute change” under Andrea Baldo.

The Italian, former Ganni boss, replaced Thierry Andretta as chief executive in July.

The board also flagged plans to raise £10.75 million from shareholders to shore up its finances.

While describing Frasers as “a committed and significant investor”, Mulberry insisted the 130 pence per share offer “does not recognize the substantial potential future value of the company”.

A spokesperson added: ‘The board has been informed that Challice supports the company’s strategy and has no interest in supporting the potential bid. Consequently, the board of directors rejected the possible offer.

Frasers, whose brands include Sports Direct, Flannels and House of Frasers, was angry that Mulberry did not inform it of the fundraising plan until the last minute.

Launching its bid, the High Street powerhouse said it was “exceptionally concerned” about the luxury group’s future and insisted it was “the best manager to return Mulberry to profitability”.

Under “put up or shut up” procurement rules, Ashley’s group has until 5 pm on October 28 to make a firm offer or walk away.

Ashley, 60, a ruthless procurement specialist, must decide her next move. AJ Bell investment director Russ Mold described the situation as “bizarre” given that Frasers and Challice between them own 93 per cent of Mulberry.

It’s dawn bags for Mulberry. The easy option is for Challice to buy Frasers at a premium and take Mulberry private, but Ashley is never one to give up on things without a challenge.

Ashley has grown her retail empire from a shop in Maidenhead, Berkshire, to a property that includes Game, Jack Wills and Agent Provocateur.

He named Michael Murray chief executive in 2022, the same year Murray married Ashley’s eldest daughter Anna. But Ashley remains the majority shareholder in Frasers.

The Ong family has a lower profile in the UK, although they oversee a vast hotel empire from Singapore.

Ong Beng Seng is also credited with helping launch Formula One in Singapore and owns the rights to the country’s Grand Prix. His daughter Melissa has been a non-executive director of Mulberry since 2010.

Mulberry shares added 4.8 per cent and Frasers Group fell 2.2 per cent.