Mulberry cuts jobs in Somerset in ‘rebuild’ after sales plunge

The cuts, which impact about a quarter of its 350-strong workforce, have predominantly impacted its London design headquarters, as well as some Somerset office workers.

Mulberry is among several firms to have been hit hard by a sharp decline in luxury spending worldwide.

Revenues from its wholesale and franchise business dropped by 46% to £5.4 million, as it was particularly affected by partners in Italy and Denmark reducing their orders due to tough conditions.

Meanwhile, UK revenues fell by 14% to £31.3 million amid “low consumer confidence”.

The company also saw pre-tax losses widen to £15.7 million for the period, compared with a £12.8 million loss a year earlier.

It comes a month after Mike Ashley’s Frasers Group – which owns a roughly 37% stake in the company – ditched plans for a £111 million takeover offer.