Property transactions

RNS Number : 3783M

Mulberry Group PLC

24 May 2010

 



Mulberry Group plc - Property transactions

Mulberry Group plc ("Mulberry" or the "Group"), the luxury British fashion house specialising in the design, manufacture and sale of leather goods and accessories, announces two property transactions.

New Bond Street store

Mulberry has recently signed a lease for a new flagship store at 50 New Bond Street.  The store will have 5,400 square foot of retail space at ground floor level which will enable a much stronger and more coherent presentation of the entire Mulberry product range than is currently possible in the existing split level New Bond Street premises.  The lease is for 25 years at an initial rental of £1.4m per annum.

The new store is planned to open during December 2010, at which time the existing store at 41/42 New Bond Street will close.  The closure of the old store will give rise to a one-off exceptional impairment charge of £1.1m which will be recorded in the accounts for the year ended 31^st March 2010.

New London head office and showroom

As indicated within the announcement dated 18^th June 2009, Mulberry has been searching for new office and showroom premises in London to consolidate its existing facilities into a single location and cater for future expansion.   Terms are being agreed for a 36,000 square foot space that will accommodate all London based departments and showrooms.  It is expected that contracts will be exchanged within the next few weeks.  The Shepherd's Bush and New Bond Street office leases will be disposed of in due course.

Trading continues to be strong and, before the exceptional charge explained above, results for the year to 31^st March 2010 will be in line with market expectations.

These property transactions reflect the continued process of investing the significant profit and cash being generated by the Group in creating a platform for future growth.

Enquiries:

Pelham Bell Pottinger	Tel: [phone]
Kate Catchpole / Lucy Frankland
Altium Capital	Tel: [phone]
Ben Thorne / Melanie Szalkiewicz

 

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