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UK-based Mulberry to cut 25% of workforce
- 28th Jun 2020
Mulberry was founded in 1971 by Roger Saul and his mother Joan. In 1973 they opened a factory in Somerset, England. Mulberry has stores throughout UK , Europe, US, Asia and Australia. Their corporate offices are in Somerset, London, and New York. Mulberry makes their designer leather goods at their first factory in Somerset, named Rookery. In 2013 they established their second factory in Somerset, and it was named as ‘The Willows’.
Many of their men's sacks are produced in three Turkish industrial facilities, which is additionally utilized by brands like Dunhill and Givenchy. Their small cowhide merchandise like handbags, wallets and telephone holders are made in China, likewise Mulberry scotch-grain gear.
In March 2017, Mulberry launched their Asian unit with their joint venture partner, Challice and in the same year they signed a deal to form a joint venture with Onward Global Fashion in Japan, with their headquarter in Tokyo. In February 2020, Mike Ashley owned Frasers Group bought a 12.5% stake in Mulberry.
The UK luxury brand recently said that it intends to cut 25% of its worldwide workforce of around 1,500, trying to lessen its cost base after demand was hit by the coronavirus pandemic.
Mulberry, most popular for its calfskin bags, said given the vulnerability over the effect and length of COVID-19 on its business and the economy as a whole, it expected the recuperation in deals levels over the medium term to be steady.
Its stock value has fallen by 30% so far this year, cautioned that even when stores will re-open, the social distancing measures, alongside the diminished visitor numbers and footfall levels, would keep on affecting income.
CEO Thierry Andretta said, “Launching a (employee) consultation process has been an incredibly difficult decision for us to make but it is necessary for us to respond to these challenging market conditions, protect the maximum number of jobs possible and safeguard the future of the business.”
Most of Mulberry's more than 120 claimed and accomplice stores across 25 nations stay shut because of national lockdowns.
However, it has re-opened stores in China and South Korea, and a few stores in Europe and Canada. It designs a staged re-opening of its UK stores from June 15. Mulberry's online business has done well even during the crisis.
Mulberry said that it was keeping up a positive exchange with loan specialists to guarantee a sane liquidity position. As of now Mulberry has net cash in hand and its borrowing facilities are still undrawn.