Mulberry Group has received a £83 million (US$160.6 million) takeover bid from Frasers Group, which already owns 37 per cent of the struggling British luxury retailer.

Frasers said it made the bid for the shares it does not currently own as it would “not accept another Debenhams situation where a perfectly viable business is run into administration”.

Frasers noted it became “exceptionally concerned” as Mulberry’s auditors flagged a “material uncertainty related to going concern”.

The Mike Ashley-controlled group offered the acquisition following Mulberry’s disclosure that it seeks to raise over £10 million in cash after swinging to a loss in the last fiscal year.

Meanwhile, Mulberry provided a holding response to the proposal due to its accelerated timeframe, which Fraser finds “wholly unsatisfactory”.

“We have long been supportive of the brand and commercial opportunities available to the company,” said Frasers.

“With our leading retail expertise and presence and best-in-class distribution capability, we believe Frasers to be the best steward for returning Mulberry to profitability.”