Fashion Retailer Superdry: A Possible Takeover by CEO Amid Financial Crisis
The CEO of Superdry, Julian Dunkerton, who is also the company’s largest shareholder, is considering a takeover bid for the struggling British fashion retailer. Dunkerton is weighing several options, including making a cash offer for the shares he doesn’t currently own, as the brand battles with weak demand and financial difficulties.
Superdry’s shares experienced an extraordinary surge, reaching heights unseen since October. This increase was triggered by reports that U.S. private equity firm Sycamore Partners and Authentic Brands Group, owner of the Ted Baker brand, were potentially interested in Superdry. Further fueling the share price hike was news of a 5.3% stake acquisition by Norwegian alternative investment fund First Seagull.
However, Superdry’s official statement did not address these takeover speculations. Instead, it focused on Dunkerton’s potential cash offer, possibly in conjunction with financial partners. The company emphasized that discussions are still in the early stages, and no definitive decisions have been made yet.
Dunkerton currently holds a 26% stake in Superdry, a brand whose share prices have suffered significant declines recently due to market conditions. Despite the recent surge, shares remain far below their peak of over 2,000 pence in 2018, standing at 48 pence after a 127% increase on Friday.
Superdry’s financial struggles were further highlighted last week when the company announced that its finance chief, Shaun Wills, would be stepping down at the end of March. The company also stated it does not anticipate an improvement in market conditions in the near future, following a challenging Christmas period.
In response to these challenges, Superdry has been consulting with advisers to explore various cost-saving measures. One such measure reported by Sky News could involve a drastic restructuring of the company, potentially leading to significant store closures and job cuts.
Matthew McEachran, senior analyst at Singer Capital Markets, commented on the situation, expressing little surprise at the potential takeover bid from Dunkerton. He emphasized Dunkerton’s integral role in Superdry’s recovery roadmap and the urgency of implementing any cost restructuring measures. However, he also noted that such restructuring would require funding.
Superdry, known for its jackets and clothing inspired by American vintage styles and Japanese graphics, continues to explore its options as it seeks to navigate through its financial difficulties and secure a stable future.
