Superdry shares take a 55% dive after CEO drops plan to buy out troubled fashion retailer
Retailer has about 3,350 staff working across 215 stores, including nine outlets across Ireland, north and south.
Shares in Superdry closed over 55% lower on Tuesday in the first trading session after its chief executive said before the Easter weekend that he wouldn't after all be buying out the troubled retailer.
The company had announced after markets closed on Thursday that Julian Dunkerton, the founder and chief executive of Superdry, had opted against a takeover after a two-month pursuit.
Investors took flight on Tuesday, sending Superdry’s shares crashing to only 13 pence by the market close, valuing the company at less than £14m (€16.3m). The shares are trading at their lowest since they started trading in 2010.
Mr Dunkerton began selling clothing on a market stall and co-founded Superdry in 2003, growing it into one of the most successful names, selling T-shirts, jeans and coats. It now has about 3,350 staff working across 215 stores, including nine outlets across Ireland, north and south.
In January, it said it was considering store closures and job cuts after sales dropped by almost a quarter in the six months to October 2023. The retailer also appointed a new finance boss, the fifth in five years.
It then emerged that Mr Dunkerton, who owns a 20% stake in the company, was in talks with partners to buy the company, which was valued at £40m at the time.
The retailer said that, after talks, it had been decided by Superdry and Mr Dunkerton that the takeover offer would not be enough to help the company with its turnaround and cost-cutting plans.
Discussions are continuing with Mr Dunkerton over an alternative deal, which could include an equity raise underwritten by Mr Dunkerton, with this providing additional liquidity for the company’s turnaround plan. It added that there was no certainty that a deal would be agreed.
