The clothier is to gradually reopen its UK stores as of June 15 following other sites in China, South Korea, Europe and Canada
PLC () said it is launching a consultation process to consider sacking 25% of its workforce.
The clothier is to gradually reopen its UK stores as of June 15 but sales are expected to remain subdued due to social distancing measures.
READ: Mulberry suspends dividends amid coronavirus outbreak
The clothier has already resumed trading in some sites in China, South Korea, Europe and Canada, while the online channels have been operating in all markets without interruption, though they could not offset the sales lost due to closures.
The firm said it had net cash and its borrowing facilities remained undrawn as of Monday.
“Even though people are saving more money, priorities have changed and evidently consumers are not wanting luxury physical items,” said Nigel Frith, analyst at asktraders.com.
“Will Mulberry be the first luxury brand to be lost? We will just have to wait and see, but it wouldn’t be surprising if a few more are well on their way to a potential liquidation.”
Shares advanced 1% to 198.65p on Monday morning.
–Adds analyst’s comment–
Read More: Mulberry Group PLC considers sacking 25% of staff as social distancing
