Mike Ashley set for Mulberry boardroom showdown
Frasers currently has a 37% stake in Mulberry which is majority-owned by the Singapore-based hoteliers the Ong family
Mike Ashley could be set for a boardroom showdown with the majority shareholder at Mulberry, according to reports from The Telegraph.
The outlet reported that Frasers owner Ashely has recently requested a voice in the boardroom at the luxury fashion retailer after senior members at Frasers met Mulberry chairman Chris Roberts.
Frasers currently has a 37% stake in Mulberry which is majority-owned by the Singapore-based hoteliers the Ong family.
The Telegraph claims that Ashley requested the meeting after growing frustrated about a “lack of transparency” regarding the company’s performance in Asia.
It comes after Mulberry signed a deal with Challice, the Ongs’ company in Singapore, to establish a joint venture to expand Mulberry in the Far East in 2017. At the time Challice took a 40% stake in the venture.
It is believed that Ashley wants to be informed on how the joint venture operates and the Ong’s involvement.
The Telegraph added that the request from Ashley has yet to have been approved or turned down.
Last month, Mulberry revealed that trading has been in line with the group’s expectations, with revenues being “slightly” ahead of last year and profitability being weighted to the second half.
This comes as the group has seen an improvement in retail revenue over the second half compared with the first half of the year, driven by a good performance in the UK and an improving environment in China that was underpinned by the retailer’s direct-to-customer model.
As a result, the retailer’s net cash balances as of 1 April are expected to be around £0.8m, with further headroom available under its borrowing facilities.
