Mike Ashley’s Frasers Group has dropped its $111 million bid for Mulberry Group and is now pushing for a seat on the luxury handbag maker’s board to influence strategy. 

“In the absence of proper engagement from the Mulberry Board on the Possible Offer, Frasers is choosing to bring the offer period to an end,” the company said on Wednesday. 

Mulberry rebuffed two offers from Frasers this month and Challice Limited, the investment vehicle of Singapore-based billionaire Ong Beng Seng which owns 56.4% of its shares, has said it had no interest in selling its Mulberry shares to Frasers.

In its statement, Frasers said it was “concerned about the governance of Mulberry” and its exclusive engagement with Challice on Mulberry’s recent share sale to raise funds. 

Frasers continued by pushing for a seat on the board: “The Board of Mulberry has consistently recognised Frasers as a supportive shareholder and given its 37% shareholding, Frasers now hopes the Board will engage positively on a Frasers appointee to the Mulberry Board, a request that has been made several times in recent history …

“Frasers continues to believe that market headwinds, and a clear lack of commercial plan, place the Company in a very difficult financial position. Frasers welcomes the presentation of a credible plan in the near term.”

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The tug-of-war over the future of Mulberry has ended with Challice having the shareholder weight to pull the company on its side. Frasers’ bid got stuck in the mud of hardened resistance from the board, which described the bid as untenable. Without a sharply higher bid to pique enough interest, Challice was never going to budge.

“The question now is whether Mike Ashley’s Frasers Group will get a bigger say on the way forward for Mulberry. Frasers Group has made it abundantly clear that it’s been very unhappy with the direction the company has been heading in, fearful of another Debenhams-style collapse which saw its investment evaporate.

“While this may be seen as a fit of angry bluster, engagement is likely to lead to a better outcome and smoother path to recovery rather than risk continual sniping from the sidelines.

“Whatever the path chosen it’s clear that the new CEO Andrea Baldo is set to stay under intense scrutiny as he attempts to turn the brand’s fortunes around.’’