(Reuters) -British sportswear and apparel retailer Frasers has proposed a possible 83 million pound ($111 million) takeover of struggling luxury brand Mulberry, saying it wants to avoid "another Debenhams situation".

Mike Ashley’s Frasers Group has made an £83m takeover bid for Mulberry as the luxury handbag maker battles to turn around its fortunes. The group, which is Mulberry’s second-largest shareholder, said it would pay 130p in cash per share for the company as it warned it was “exceptionally concerned” over the state of its finances.

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,