Superdry co-founder and chief executive Julian Dunkerton is in talks over a possible takeover as the struggling fashion brand launches a restructuring plan to save itself from financial ruin.
The plan includes delisting from the stock market, raising cash, slashing rents, and extending loans in an effort to turn the brand around. Superdry, once a powerhouse in the fashion industry, has seen its shares plummet from over 500p to just 8p, leaving the equity valued at less than £8 million.
Dunkerton, who returned to the business as CEO after ousting the rest of the board, is looking to raise up to £10 million in equity from other investors to keep the brand afloat. He stated, “At its heart, these proposals are putting the business on the right footing to secure its long-term future following a period of unprecedented challenges.”
The move to delist from the stock market is aimed at giving the company time away from the daily scrutiny of its battered share price and to implement significant cost savings. Superdry is not the only mid-market retailer to have struggled recently, with rivals like Ted Baker also facing tough times.
Superdry chairman Peter Sjӧlander expressed confidence in the plan, stating, “The board has spent a lot of time engaging with Julian Dunkerton to come up with a plan which gives the business the best possible prospects for the long term while protecting the interests of shareholders and other stakeholders to the greatest extent possible.”
The future of Superdry remains uncertain, but Dunkerton’s commitment to the brand and his efforts to secure its long-term success are evident in the proposed restructuring plan.
