British heritage brand Mulberry faces painful restructuring

The once-celebrated British leather goods house Mulberry is set to slash nearly a quarter of its corporate workforce, eliminating 85 positions from its 350-strong staff base, according to Business of Fashion. The dramatic restructuring follows a failed takeover attempt by Frasers Group and signals a bid to return to profitability through cost-cutting measures.

"The strategy for the business is clearly not delivering," Mulberry CEO Andrea Baldo said in an email statement. "It is essential that our teams are set up for success and are able to act with agility and pace so that we can restore Mulberry to profitability."

The announcement marks a stark reversal of fortune for a brand that once defined British accessible luxury. In the early 2000s, Mulberry reached the zenith of its influence, particularly with the launch of the Alexa bag in 2010, named after style icon Alexa Chung. The brand successfully captured the zeitgeist of Cool Britannia, offering a perfect blend of heritage craftsmanship and contemporary design that appealed to both traditional luxury consumers and fashion-forward millennials.

During its golden era, Mulberry's Somerset factories could barely keep up with demand. The company's signature Bayswater bag became a status symbol for young professionals, while collaborations with celebrities and designers kept the brand relevant to a younger demographic. The company's stock price soared, and its retail footprint expanded globally.

Waning desirability

However, the brand's decline can be traced to its failure to evolve with changing consumer preferences. While competitors like Toteme and The Row have captured the minimalist luxury market with understated designs, and Miu Miu has successfully courted Generation Z with viral accessories and playful aesthetics, Mulberry has remained anchored to its conservative, structured silhouettes, as seen in frumpy styles like the Lana and Amberley.

The company's adherence to traditional, corporate-friendly designs has proved particularly problematic as workplace fashion has become increasingly casual. Mulberry missed crucial trends that defined the latest luxury accessories market, including the rise of slouchy, unstructured bags and the "quiet luxury" movement championed by brands like other leather goods makers, which combine understated elegance with more modern design sensibilities.

Further compromising its position, Mulberry's mid-luxury price point has become an increasingly challenging market segment, squeezed between accessible luxury brands and ultra-luxury houses that have maintained stronger brand desirability.

The restructuring announcement suggests a recognition that fundamental change is needed, though questions remain about whether cost-cutting alone can address the brand's more fundamental challenge: reconnecting with a new generation of luxury consumers while maintaining its heritage appeal.