U.K. retail empire Frasers Group has made a non-binding bid for British luxury handbag maker Mulberry after the company announced a capital raise following poor sales.

Luxury handbag maker Mulberry has received a takeover approach from Mike Ashley's Frasers Group. The offer values Mulberry, which has seen sales fall sharply following a downturn in the luxury sector,

Frasers Group has acquired more shares in the luxury fashion retailer, just days after the Mike Ashley-controlled group propose a takeover bid for business.