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  • 📈 Mulberry's Cash Crisis: Ashley to the Rescue

📈 Mulberry's Cash Crisis: Ashley to the Rescue

Carmoola Gears Up: £100m Loan Jackpot

October 01, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Mulberry's Cash Crisis: Ashley to the Rescue

  • Carmoola Gears Up: £100m Loan Jackpot

  • IW Capital's £30m Fund: SMEs' New Best Mate!

The summary: Mike Ashley’s Frasers Group is making a bold move to snap up the struggling Mulberry, aiming to save the iconic handbag brand from financial ruin and avoid another Debenhams-style fiasco.

The details:

  • Mike Ashley's Frasers Group is eyeing a full takeover of Mulberry, aiming to rescue the handbag maker from a possible Debenhams-like demise.

  • Frasers already owns 37% of Mulberry and has made a cheeky bid for the rest at an 11% premium, just as Mulberry scrambled to raise cash after a £34.1m loss.

  • The luxury brand is struggling with weak demand, prompting fears over its future, though Mulberry insists it's not on the brink of collapse just yet.

  • With Frasers' October 28th deadline to make a formal offer, it seems Ashley is fed up with Mulberry's financial woes, hoping to prevent another retail disaster.

Why it matters: Mike Ashley is once again swooping in, playing the retail savior with Mulberry in his sights, hoping to prevent a repeat of his £300m Debenhams debacle. Mulberry’s handbags may be iconic, but a £34m loss and desperate cash-raising schemes have them teetering on the edge. If Ashley has his way, Frasers Group could soon be the proud owner of yet another ailing British brand, giving the luxury market a much-needed jolt – or at least some handbags that sell.

The summary: Carmoola’s turbocharged with a £100m NatWest loan, aiming for big growth and billions in loans, despite mounting debt—clearly, they’re all in for a high-speed ride!

The details:

  • Carmoola just secured a fresh £100m loan from NatWest, adding to their already impressive stack of debt, including a £31m refinancing and revolving credit facilities. Not shy about borrowing, are they?

  • The London-based fintech is looking to use this new cash influx to grow its customer base, aiming for billions in loan originations over the next five years—ambitious, much?

  • While revenues surged to £2.7m in 2023, losses also doubled to £7.4m, and the cost of financing its debt quadrupled to £2m. A case of "spend big to win big" perhaps?

  • NatWest's George Ross is all in, calling the £100m loan a vote of confidence in Carmoola's innovation in the car finance sector. Let’s hope this drive pays off!

Why it matters: Carmoola’s £100m loan from NatWest shows how much confidence the bank has in the fintech's ambitious plans, despite its mounting losses. With billions in loan originations targeted, the stakes are higher than ever, and their debt pile is racing to catch up. It’s a classic case of betting big, hoping the wheels don’t fall off before they hit the jackpot!

The summary: IW Capital's new £30m fund, under the savvy guidance of Tariq Attia and Alan Armstrong, is set to boost UK SMEs with the cash and connections they need to flourish in today’s challenging market.

The details:

  • IW Capital launches a £30m fund to supercharge UK SMEs, led by new CEO Tariq Attia and Chairman Alan Armstrong. Their mission? Scale up the next wave of British brilliance.

  • This fund focuses on sectors like tech, green innovation, and healthy living, with IW Capital’s "patient capital" giving businesses the space to grow at pace.

  • With over £150m already in play, IW Capital's agility has made it a lead investor, with notable exits and big-name partners like Barclays and ITV.

  • CEO Attia and Chairman Armstrong are bullish about backing experienced teams that tackle societal shifts, with an entrepreneurial touch that makes them stand out in today’s market.

Why it matters: With IW Capital’s new £30m fund, UK SMEs can expect a financial lifeline, enabling them to grow without the usual hiccups of securing investment. Under the seasoned leadership of Attia and Armstrong, these businesses will not only get cash but also the savvy advice and networks needed to thrive. In a market where funding can feel as rare as a sunny day in England, this initiative promises to keep the entrepreneurial spirit alive and kicking across the nation.