Frasers Group has withdrawn its pursuit of British luxury brand Mulberry after facing unanimous rejection of its proposed 150p per share offer, highlighting growing tensions between the retail conglomerate and the heritage label's board.

The Mike Ashley-founded group, which has been strategically pivoting towards premium retail through acquisitions including House of Fraser and Flannels, found its ambitions thwarted by Mulberry's majority shareholder Challice. The Singaporean investor stated it had "no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking with regards the possible offer," reported Yahoo Finance.

Despite holding a significant 37 per cent stake in the luxury handbag maker, Frasers' relationship with Mulberry's board appears increasingly strained. In a statement to the stock exchange, Frasers expressed particular concern about corporate governance, specifically referencing a recent 10m pounds emergency subscription arrangement with Challice.

"Frasers remains a long-term supporter of the well-loved British brand," the company stated. However, it added: "Frasers also remains concerned about the governance of Mulberry, and in particular, would not like to see another scenario where the board chooses to exclusively engage with Challice in private on significant matters, such as the emergency subscription of 10 million pounds announced on 27 September."

The failed takeover bid has now evolved into a boardroom representation dispute, with Frasers noting: "The board of Mulberry has consistently recognised Frasers as a supportive shareholder and given its 37 percent shareholding, Frasers now hopes the board will engage positively on a Frasers appointee to the Mulberry board, a request that has been made several times in recent history."