海角视频 handbag maker Mulberry is in talks to raise £20m as it continues to struggle with a tough trading environment and widening losses.
The Somerset-founded business, which is still headquartered in Chilcompton, said the extra capital would fund its growth strategy and meet the group's medium-term revenue and profitability targets.
The announcement came as the business warned it expects to make a loss in the region of £23m for the 2025 financial year. Revenues are also predicted to drop to £120m from £152.8m the year previously.
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The results for the year ending March 29, 2025, will be published in July and are subject to audit.
Trading in the 11 weeks since the year end has been in line with the board’s expectations, Mulberry said. It added that it does not expect material overall revenue growth in the current financial year.
The company, led by chief executive Andrea Baldo and a new management team, is currently progressing a transformation plan - dubbed 'Back to the Mulberry spirit' - in a bid to return the business to profitability.
Medium-term goals include reaching annual revenues of £200m and an earnings before interest and tax margin of 15%.
It is understood the company is in talks with majority shareholder Challice – a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng – and Mike Ashley’s Frasers Group over the fundraise.
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Mr Baldo said: "In the near term, we are firmly in turnaround mode - focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives."
He added: "Following our year-end review, the board and I are confident that, with additional funding, we can accelerate momentum and deliver against our targets at pace.”
In January, Mr Baldo said Mulberry had “neglected to connect” with British customers in recent years and planned to start selling more in the 海角视频, rather than China.
The company, founded in 1971, is most famous for its luxury leather handbags, but has seen profits plummet in recent times, in part due falling demand among Chinese consumers.