British retailer Mulberry rejects takeover bid from Mike Ashley's Frasers

British luxury brand Mulberry on Tuesday rejected sportswear retailer Frasers' FRAS.L 83-million-pound ($111 million) takeover proposal, citing the bid did not have the support of majority shareholder Challice.

Mulberry also said the proposal from Frasers, its second-biggest shareholder, did not recognise the company's "substantial future potential value".

Frasers, controlled by British businessman Mike Ashley, had said on Monday it wanted to avoid "another Debenhams situation" as it made its bid for Mulberry.

Debenhams, a department store in which Frasers had invested 150 million pounds, went out of business in 2021.

Loss-making Mulberry on Friday had announced a proposed 10-million-pound subscription of shares by Challice, Mulberry's Singaporean backer and 56% shareholder, to prop up its finances.

"The Board has been informed that Challice is supportive of the company's strategy and has no interest in supporting the possible offer," Mulberry, known for its leather bags and belts, said in a statement.