Ashley, who first made a run at Mulberry in late 2020, is making a cash offer worth 83 million pounds for the British B Corp accessories brand.

The takeover approach values the luxury handbag maker at £83m amid concerns about its future.

The luxury fashion brand, where Frasers is already a major shareholder, warned last week that sales had slumped

Mike Ashley’s Frasers Group said on Monday that it had made an £83m takeover bid for Mulberry, as it criticised the luxury handbag retailer for not informing it of plans to raise £10m.

Mulberry said it had discussed the approach with its majority shareholder, Singapore-based Challice, which is controlled by billionaire Ong Beng Seng and his wife Christina.

The luxury brand, which is battling a global slump in demand for goods such as handbags with large price tags, says the proposal undervalues its prospects.

Expensive handbag maker Mulberry has rejected an £83m takeover offer from Mike Ashley’s Frasers Group saying it failed to recognise the company’s “substantial future potential value”.

U.K. retail empire Frasers Group has made a non-binding bid for British luxury handbag maker Mulberry after the company announced a capital raise following poor sales.

London open The FTSE 100 is expected to open 35 points higher on Tuesday, having closed down 1.01% on Monday at 8,236.95.