Challice, which has a 56% stake in Mulberry, reportedly told Frasers to drop its pursuit of acquiring the brand as it had “no interest in selling to Frasers”, which is the Mike Ashley-owned brand that is the second largest investor in Mulberry.

Frasers had upped its bid on 11 October, valuing the firm at £111m ($144.96m) after its original £83m takeover bid was rejected.

At the time, industry onlookers told Just Style the situation had created “a mess with Mulberry’s corporate situation in the public eye”. They wondered if Mulberry was missing an opportunity given the financial difficulty it is currently in.”

According to a statement to the London Stock Exchange, Mulberry said its board is “working with advisers to consider the company's position and will provide a further announcement in due course” and that “there can be no certainty that an offer will be made for the company nor as to the terms on which any such offer might be made.”

According to a Sky News report, Challice added it “believes that it is an inopportune time for Mulberry to be sold and particularly regrets the distraction that the possible offer is bringing to the company and its management team at this time.

"Challice has no interest in either selling its Mulberry shares to Frasers or providing Frasers with any irrevocable or other undertaking regarding the possible offer.”

Frasers Group has until 28 October to make a firm offer for the company under City takeover rules.

But according to the report, Challice said it “hopes that by making its position clear, Frasers will be encouraged to announce that it does not intend to make an offer for Mulberry.”

Frasers Group declined Just Style's request for comment.