The news came a day after Mulberry announced that it had rejected a second takeover proposal of £111m, or 150p a share, saying it was “untenable”.

Mulberry’s rejection of the offer - up from a previous proposal of 130p a share - came after major shareholder Challice said it had no intention of selling its 56% stake to Frasers.

Frasers said it had become increasingly concerned over the governance of Mulberry, the apparent lack of commercial plan against a backdrop of increasing market headwinds and the financial position it finds itself in.

It said: “Whilst the response announcement is a disappointing outcome, Frasers remains a long-term supporter of the well-loved British brand, Mulberry.

“Frasers continues to believe that market headwinds, and a clear lack of commercial plan, place the company in a very difficult financial position. Frasers welcomes the presentation of a credible plan in the near term.”

Frasers owns a 37% stake in Mulberry.

Mulberry shares ended the session down 3.5% at 111p.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The tug-of-war over the future of Mulberry has ended with Challice having the shareholder weight to pull the company on its side. Frasers' bid got stuck in the mud of hardened resistance from the board, which described the bid as untenable. Without a sharply higher bid to pique enough interest, Challice was never going to budge.

"The question now is whether Mike Ashley’s Frasers Group will get a bigger say on the way forward for Mulberry. Frasers Group has made it abundantly clear that it’s been very unhappy with the direction the company has been heading in, fearful of another Debenhams-style collapse which saw its investment evaporate. While this may be seen as a fit of angry bluster, engagement is likely to lead to a better outcome and smoother path to recovery rather than risk continual sniping from the sidelines. Whatever the path chosen it’s clear that the new CEO Andrea Baldo is set to stay under intense scrutiny as he attempts to turn the brand’s fortunes around."

Danni Hewson, head of financial analysis at AJ Bell, said: "A bit like trying to secure a date with the object of your affection, if you’re consistently rebuffed you’ve probably been relegated to the friend-zone.

"When it comes to Frasers Group and Mulberry it might be more a case of ‘frenemies’. After weeks of knocking on an unresponsive boardroom door Mike Ashley’s retail behemoth has decided it can put its money to better use elsewhere. But the Sports Direct owner will retain its chunky stake in Mulberry and hopes it might at least get a peck on the cheek the next time the board of the luxury goods maker gets around the decision-making table.

"Whilst Frasers Group has certainly got the chops to take an ailing brand like Mulberry to new heights, Mulberry very clearly wants to set its own cruising altitude. Though Mulberry’s shares slipped on the news that Frasers won’t dig any deeper, so it seems many investors will want the company to show its strategic hand quickly.

"With another of Frasers’ previous targets, Debenhams, now potentially in play thanks to Boohoo’s recent rejig it’s only reasonable to assume speculation will mount that the retailer might want to have another go at making that high street darling into an online success."