Burberry, the esteemed luxury fashion label, may soon fall under the umbrella of Italian skiwear giant Moncler, following a lead suggesting that staff at one of its premier London establishments have been briefed on the potential acquisition, reports suggest.
Last week, speculation swirled around a possible takeover bid by the skiwear manufacturer for the publicly traded British brand, but neither party has issued any comments on these rumours, as reported by .
Nonetheless, The Mail on Sunday has gained access to documents indicating employees have been apprised of an approach, yet the details of the proposition remain undisclosed.
The Mail disclosed that employees had been instructed to maintain confidentiality regarding Moncler's overture until a formal announcement is made.
In pursuit of a comment, City AM has contacted Burberry.
At the start of the year, some city analysts flagged Burberry as a possible acquisition target, noting the significant fall in its share price.
2021 has been challenging for Burberry on the stock market. It has been the poorest performer on the FTSE 100 and was consequently dropped from the index in September, attributed to its dwindling value.
Investor concerns have been heightened due to Burberry's undetermined creative vision, decreased appetite for high-end merchandise, and the unexpected switch in CEO leadership.
Playing into this narrative of vulnerability, LVMH chief Bernard Arnault has been said to be "keen" on securing a deal with Burberry, Miss Tweed, a dedicated fashion website, reported.
In September, LVMH confirmed it had acquired a 10% holding in Double R, which is steered by Moncler CEO Remo Ruffinis investment group, Ruffini Partecipazioni Holding.
Double R currently holds a 15.8 per cent stake in Moncler, and the agreement has provided LVMH with a seat on the board of the Italian firm.
RBC analysts have expressed their understanding of a potential Moncler takeover, stating that "deal valuation multiples (even at an elevated premium) appear attractive relative to historical sector transactions [and] there are opportunities for improvement at Burberry and category related synergies".
"Burberry's inconsistent product strategy history, marked by unsuccessful ventures into leather goods rather than focusing on its core outerwear heritage, seems to finally be undergoing a course correction, as evidenced by recent fashion shows and industry comments under new CEO Joshua Schulman. This makes the proposition more appealing for Moncler," the analysts further noted.
