Mulberry will acquire the rights to its US business and end a joint venture with its US partner.
The deal will allow Mulberry to take full control of the wholesale and retail sales of Mulberry products in the US, and allow Mulberry’s online business to be consolidated with the rest of its US operation.
Sales from Mulberry’s website have grown significantly prompting the move to take control of the US market.
Mulberry will pay $0.5million (£0.3m) for inventories and $1 (£0.66) for two Mulberry shops in New York. The other three US stores will be closed and Mulberry will take back the retail and wholesale rights to the US. Challice, which owns around 60% of Mulberry, will acquire Mulberry’s 50% stake in MUSA for a nominal consideration.
Mulberry USA has owned the US wholesale and retail rights to the brand since 2000, when Mulberry made a $1m (£0.66m) investment in the joint venture. Mulberry retained the rights to sell online in the US.