Contemplating a potential takeover of the struggling fashion retailer, Julian Dunkerton, the CEO and co-founder of Superdry, is in discussions with potential financing partners to support a cash offer for the business. Holding a 20% stake, no final decisions have been made, and the discussions are still in the early stages, the company announced on Friday.
Speculation about a possible private takeover deal heightened after Norwegian hedge fund First Seagull acquired a 5.3% stake with hopes of a buyout. Following several profit warnings in the past year, leading to a decline in its share price, the investor believes that the fashion retailer is primed for a bid.
With a 64% plummet in share price in the last 12 months and a drop of 91% since 2019, Superdry is under significant pressure.
After the announcement of widening losses, Dunkerton acknowledged that the retailer is facing a “challenging period.” Sales plunged by 23.5% to £219.8m, leading to Superdry’s adjusted pre-tax loss increasing from £13.6m to £25.3m in the six months leading up to October 28 due to weaker trading.
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