Struggling luxury brand, Mulberry, has turned down a bid from Frasers Group.

The Mike-Ashley controlled retail group already owns 37% of Mulberry's shares. It put forward a cash offer, valuing the business at £83m, which has been rejected by Mulberry, as reported by The Mirror.

Mulberry said the offer "does not recognise the company's substantial future potential value".

The luxury brand launched plans to raise over £10m in cash last Friday (September 27) - and Frasers only found out at the last minute, as reported by Retail Gazette.

Reacting to the news, Frasers Group said: "As a committed long-term investor in Mulberry, Frasers would have been willing to underwrite the subscription in its entirety, potentially on better terms for the company."

The retail group said its offer of £1.30 per share was 30% higher than the £1 subscription price on Mulberry's retail offer, and 11% higher than its closing share price on Friday.

The retailer's sales have fallen 18% so far this year, amid a slowdown in the luxury goods market.

Frasers said it believes it has the best chance of returning Mulberry to profitability.

It added: "As a 37% shareholder, Frasers will not accept another Debenhams situation where a perfectly viable business is run into administration."