Mulberry will take hit from collapse of retailer - leatherbiz: Leading Leatherbiz

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Mulberry will take hit from collapse of retailer

23/08/2018
Mulberry will take hit from collapse of retailer
UK-based leathergoods brand Mulberry has said it expects the collapse of department store group House of Fraser to cost it around £3 million.

House of Fraser entered administration earlier this month, before being bought by sportswear retail group Sports Direct. Reports in the UK media have suggested the new owners only plan to pay suppliers and concession operators for goods sold since it took over.

Mulberry operates 21 concessions in House of Fraser stores. It was owed £2.4 million when the group went into administration. As a result, it has set aside £3 million to cover its losses.

In a statement, the brand 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."

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