MULBERRY TO DITCH CELEBRITY TIE-UPS

MULBERRY is ditching celebrity collaborations to offer lower-priced handbags to attract new customers.

The upmarket fashion brand is pricing its bags between £500 and £995, and is no longer to partner celebrities because their fashion lines tend to be more expensive.

It is a U-turn for Mulberry, which saw its profits leap after it partnered Alexa Chung to create the coveted ‘Alexa’ handbag in 2009.

The collaboration, steered by designer Emma Hill, who left the company in 2013, was once the firm’s bestselling design of all time. Mulberry said its new creative director, Johnny Coca, remained committed to the new approach.

Under him, the firm has launched nine bags with a focus on affordability. However, the new handbags weren’t enough to stop the brand slipping into the red.

Mulberry reported a loss of £500,000 in the six months to September 30, compared with a profit of £100,000 a year earlier, although sales were up 10pc to £74.5m.

Mulberry blamed foreign exchange costs and investment in its business in Asia.