Luxury fashion brand Mulberry has announced a significant restructuring plan after reporting a 19% drop in group revenues to £56.1 million for the six months ending 28 September.
Newly appointed CEO Andrea Baldo revealed that 85 roles—approximately a quarter of the company’s 350-strong workforce—have been cut as part of efforts to “rebuild the business” amid challenging market conditions.
The job cuts predominantly affect staff at Mulberry’s London design headquarters and some office workers in Somerset. The company cited a “difficult trading environment and uncertain macroeconomic trends” impacting sales, with revenues from its wholesale and franchise business plummeting by 46% to £5.4 million due to reduced orders from partners in Italy and Denmark.
UK revenues also declined by 14% to £31.3 million, attributed to “low consumer confidence“. Pre-tax losses widened to £15.7 million for the period, compared with a £12.8 million loss a year earlier.
Mulberry is among several luxury retailers hit hard by a global decrease in luxury spending. The company’s restructuring comes a month after Mike Ashley’s Frasers Group—holding a 37% stake in Mulberry—abandoned plans for a £111 million takeover bid.
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