Mul­berry signs deal for store con­ces­sions at John Lewis

The Daily Telegraph - Business - - Business -

By LaToya Hard­ing MUL­BERRY is seek­ing to re­build its de­part­ment store busi­ness af­ter sign­ing a deal to open con­ces­sions in John Lewis, hav­ing “learnt valu­able lessons” from House of Fraser’s fall into ad­min­is­tra­tion, boss Thierry An­dretta said.

The leather hand­bag and cloth­ing com­pany opened 18 new con­ces­sions and one dig­i­tal con­ces­sion with John Lewis last month, af­ter be­ing caught up in the tur­moil that en­gulfed House of Fraser ear­lier this year. The de­part­ment store chain col­lapsed into ad­min­is­tra­tion in the sum­mer but was res­cued by Sports Di­rect for £90m.

Mul­berry took a £2.1m hit from the clo­sure of three of its 21 House of Fraser con­ces­sions fol­low­ing the takeover. Mr An­dretta said it was com­mit­ted to con­tin­u­ing with House of Fraser, which ac­counted for 10pc of turnover ear­lier this year, but was con­fi­dent the new de­part­ment store con­tract with John Lewis would be man­aged bet­ter.

Mr An­dretta said he was “well pre­pared” and had a “pos­i­tive out­look” for the Christ­mas trad­ing sea­son.

The news came as the com­pany blamed the chal­leng­ing re­tail mar­ket and House of Fraser’s col­lapse for sink­ing to a pre-tax loss of £8.2m for the six months end­ing Sept 30. The re­tailer also took a fur­ther £2.5m bill from its launch in South Korea. To­tal rev­enue dropped 8pc to £68.3m, with UK re­tail sales fall­ing 11pc over the pe­riod.

Its shares, which are down by 72pc since the start of the year, closed up 4.5pc yes­ter­day at 330.5p.

Ja­panese mu­sic duo Ami­aya at the brand’s au­tumn-win­ter event in Seoul. Mul­berry took a £2.5m bill from its launch in South Korea

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.