SOMERSET-based luxury handbag maker Mulberry has turned down another offer from Fraser's group, the owners of Sports Direct.

Mulberry said the sweetened £111 million bid, offered by Mike Ashley’s Frasers Group on October 11, was “untenable". It previously turned down a £83m takeover bid.

The London-listed fashion firm, which has a factory and factory shop in Shepton Mallet, said its board would focus on boosting its business performance instead of taking the offer.

Mulberry said: “After careful consideration with its advisers… the board is unanimously of the view that the possible offer is untenable and that the company should focus its attention on driving the commercial performance of the business.”

Sports Direct owner Frasers, which owns a 37% stake in Mulberry, offered to pay 150p per share for the rest of the business it did not already own in order to take control.

Frasers previous 130p per share offer, which valued Mulberry at £83 million, was rebuffed earlier this month.

In recent years, Frasers has increased its luxury business, including building its stake in Hugo Boss.

Takeover plans came after Mulberry’s shares dropped sharply amid a global slowdown in the luxury consumer market — due to inflation pressures hitting wealthy shoppers.

Mulberry shares are down more than 30% over the last 12 months and have dropped by more than 22% since the start of 2024. They fell 4% in Tuesday morning trading.

Frasers now has until 5pm on Monday October 28 to make a firm bid or walk away, under City Takeover Panel rules.

Following the rejection of Frasers' offer, Mulberry praised the Sports Direct owner’s support for the group.

Mulberry said: "The board acknowledges that Frasers, through its participation in the company’s recent fundraising, has shown itself to be supportive of maintaining the value of the Mulberry brand.

"The board appreciates this and looks forward to further interactions with Frasers in the future."