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Embattled Somerset fashion brand Mulberry has plunged to a loss of more than £15m amid falling retail sales in the º£½ÇÊÓƵ and overseas.

The Chilcompton-based company reported a drop in group revenue of 19% to £56.1m for the 26 weeks ending September 28 - down from £69.7m the year before.

The handbag maker posted the set of unaudited results on Tuesday just weeks after rejecting two takeover approaches from Mike Ashley’s Frasers Group.

The Sports Direct owner abandoned its bid for Mulberry last month following what it described as “absence of proper engagement” from the luxury firm’s board.

Mulberry is majority owned by Challice – a group controlled by Singaporean entrepreneur Christina Ong and husband Ong Beng Seng - while Frasers has a 37% stake in the brand.

The Somerset firm is undertaking an equity fundraise of £10.4m in an attempt to support the board’s turnaround plan. It has also put its faith in new chief executive Andrea Baldo, who said on Tuesday there was a “clear need” to rebuild the business.

“Mulberry is an iconic brand,” he said. "In response to current market conditions, we have taken decisive steps to streamline operations, improve margins, reduce working capital, and strengthen our cash position.

“This has also meant reviewing our internal team structure to ensure we become a leaner, more agile organisation. Additionally, we've made strategic adjustments to our product, pricing, and distribution strategies, and we’ve begun discussions with luxury wholesale partners to ensure we are present wherever our customers shop.”

Mulberry has warned that the wider macro-economic environment, including ongoing inflationary pressures, continue to present “uncertainty and challenges” for the brand.

Trading for the full financial year is expected to be weighted towards the second half, bolstered by the festive trading period.

Mr Baldo added: “There is no question that our industry is facing a period of significant uncertainty, driven by a challenging and volatile macroeconomic environment that is impacting consumer confidence in several markets, particularly in our home country.

“However, with the teams’ efforts on cost-cutting, a strengthened balance sheet, a renewed brand-first approach and a refreshed business strategy—details of which I'll share in due course—I am confident we are making the right moves to bring Mulberry back to profitability."