Mulberry Seeks €23 Million in Market Funding to Support Restructuring Efforts

Mulberry continues with its plan to return to profitability as soon as possible, this time with a financing round that has just opened for £20 million (just over $26 million). As reported in a statement on Monday, the round will be used to strengthen its sales channels such as outlets, wholesale and e-commerce.

The British company is going through a delicate financial situation, so it has been immersed in a strategy of transformation and capital raising since September 2024. With this plan, it aims to achieve annual revenues of £200 million ($268.8 million) in the medium term, with profits of 15%.

On Friday, the company's shares fell by 6.7% and its capitalization stands at €89 million ($102.4 million). In a bid to increase its profitability, last November the company announced plans to cut 25% of its head office staff, affecting 85 positions.

This round follows the success of the previous round, launched in the autumn, which raised £10.4 million (around $14 million) in a round underwritten by the firm's main shareholders: entrepreneurs Ong Beng Seng and Christina Ong.

Mulberry aims to achieve revenues of £200 million in the medium term

Mulberry CEO Andrea Baldo says the company is "in recovery mode, focused on rebuilding its profitability and gross margin, while strategically investing in brand-building initiatives." As for its management, the company announced last year the departure of its non-executive director, Julie Gilhart, after more than nine years in her position.

"We have refreshed the executive team, aligned talent with our revised strategy and launched a new brand campaign to drive customer loyalty," Baldo says.

The firm already had a turnover in 2024 that was 4% lower than the previous year. During that period, it went into the red, with a loss of £35 million ($47 million), compared with a profit of £11.4 million ($15.3 million) in the previous year.