Superdry’s Chief Executive Officer, Julian Dunkerton, is contemplating a potential takeover of the company he co-founded after trading on the London Stock Exchange for almost 14 years.
After issuing a surprise profit warning in December, which had a negative impact on its share price, the British clothing brand announced on Friday that Dunkerton is in talks with potential financing partners regarding a possible offer. However, these discussions are still in their early stages, and no decisions have been made.
To address Dunkerton’s request, Superdry has established an independent committee that will evaluate his proposal. The company has provided limited information to Dunkerton and the potential sponsors to aid in considering any potential offer.
Dunkerton currently owns approximately 20.5% of the company’s issued share capital.
Currently, the shares of Superdry are up 21.85 pence at 43.0 pence as of 1249 GMT, although they reached a peak of 53.21 pence prior to the announcement. However, over the last year, the shares have declined by 67% and are significantly lower than their IPO price of 500 pence in March 2010.
With a market value of 42.6 million pounds ($54.3 million), Superdry faces challenges in its performance due to a difficult consumer retail market and mild autumn weather that led to delayed purchases of its Autumn/Winter 2023 collection during the first half of fiscal 2024.
Superdry reported a 23.5% decrease in revenue for the half-year ending October 28, totaling GBP219.8 million. The company expects the market to continue being unpredictable and challenging.
In addition, it was announced that Chief Financial Officer Shaun Wills would be stepping down and will be replaced by Giles David as interim CFO. David is expected to join the board on April 1.
As part of its turnaround strategy, Superdry is actively exploring cost-saving options, although there is no certainty regarding their implementation.
Dunkerton has until March 1 to submit a formal offer or withdraw his interest.
