News2 Apr 2024 10:43
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Superdry shares sink as CEO drops buyout bid
Updated / Tuesday, 2 Apr 2024 09:47
Superdry in January had warned that it does not expect market conditions to improve in the near term after a tough Christmas season
Superdry in January had warned that it does not expect market conditions to improve in the near term after a tough Christmas season
Shares of British fashion chain Superdry sank over 51% today after its chief executive and top shareholder Julian Dunkerton said last week he will not be making an offer for the company.
Dunkerton, who holds a 26% stake in the company and is a co-founder, had been in talks with Superdry over several options, including a possible cash offer for the shares he does not already own.
While a bid has been shelved for now, the company, known for jackets and clothing inspired by American vintage styles and Japanese graphics, said alternatives remain open as it works on cost-saving options to combat weak demand and a cash crunch over recent months.
"The company remains in discussions with Julian Dunkerton in respect of alternative structures, including a possible equity raise fully underwritten by Julian Dunkerton," Superdry said.
Dunkerton said that any equity raise would be expected at a "very material discount" to Superdry's current share price.
Dunkerton and Superdry, which issued identical statements on the decision to not pursue a bid, expressed confidence that a takeover offer was "unlikely to deliver an outcome for shareholders, or stakeholders more broadly," which existing efforts by the company could not.
The retailer last week separately said it agreed to an extension of six months and an increase of up to £20m to its secondary lending facility with Hilco Capital.
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