Mulberry to stick with House of Fraser after meeting with Mike Ashley

Bag maker Mulberry saw sales decrease in the six months to September 30 2018

Joanna Hodgson7 November 2018

Mulberry’s boss on Wednesday warned that the House of Fraser collapse has hit profits but revealed he will keep the firm’s luxury handbags in the department store chain following a sit-down with its new owner Mike Ashley.

Thierry Andretta said Mulberry will take a £2.1 million first-half hit after the August failure of House of Fraser, where it has a number of concessions.

HoF has since been sold to Sports Direct, founded by Ashley, but a number of brands have pulled stock from shelves.

Andretta told the Evening Standard he met Ashley in one of Sports Direct’s London offices following the collapse and they had “positive” talks. “For us we would like to continue to stay there,” he said of HoF.

AIM-listed Mulberry said pre-tax losses widened to £3.6 million from £600,000 in the six months to September 30. Total sales fell 8% to £68.3 million.

The firm suffered from weaker tourist footfall in London. It also invested in international expansion. The shares fell 11p to 300p.

Andretta said the company remains upbeat and has signed an agreement with John Lewis to open a number of concessions. It also last month opened a new shop at Heathrow’s Terminal 4.