Article taken from: www.bbc.com
Mulberry Luxury handbag maker Mulberry is putting aside £3m to cover costs relating to House of Fraser’s collapse. Mulberry operates […]
Click here to read the full article
Mulberry Luxury handbag maker Mulberry is putting aside £3m to cover costs relating to House of Fraser’s collapse.
Mulberry operates 21 House of Fraser concessions, employing 88 people.
Its estimate follows a review of the debts and potential costs that may result from the store chain’s restructuring by buyer Sports Direct.
Mulberry also warned that its full-year profits could be “materially reduced” if current tough conditions continued in the second half of the year.
In a statement, the company said: “Since the group reported in June 2018, the UK market has continued to remain challenging and sales in House of Fraser stores have been particularly affected.
“If these sales trends in the UK continue into the key trading period of the second half of the financial year, the group’s profit for the whole year will be materially reduced.”
Mulberry makes more than 70% of its revenue from the UK.
However, it said that trading in the rest of the world continued to develop “broadly in line with expectations” and it had signed a deal this month to create Mulberry Korea.
It added that it was in a strong cash position and continued to follow its strategy to develop Mulberry into a global luxury brand.