Mulberry is attempting to raise GBP3.5m which will be invested in the business, by way of an open offer underwritten by its largest shareholder Challice. If no other shareholders take up the offer of new ordinary shares at 28p per share, Challice's stake in @Mulberry will be increased from 41.5 per cent to 56.6 per cent.

Mulberry last week reported a GBP2.1 loss for the year to March 31 2003, up from GBP1.7 last year, on sales of GBP28.2m. Founder Roger Saul will step down from the position of non-executive president in November.