Superdry, the embattled British fashion retailer, disclosed on Friday that its CEO and major shareholder, Julian Dunkerton, is contemplating various options, including making a cash offer for the shares he does not currently hold.
Earlier on Friday, Superdry shares experienced a notable surge, reaching heights not observed since October. This surge followed a report in The Times newspaper, indicating that U.S. private equity firm Sycamore Partners and Authentic Brands Group, the owner of Ted Baker, have expressed interest in having Superdry as a potential target.
The share price also received a boost on Wednesday, driven by the news that Norwegian alternative investment fund First Seagull acquired a 5.3% stake in the company.
Superdry, in its statement, made no mention of external takeover speculation, focusing solely on the possibility of a cash offer by Dunkerton, potentially with support from financing partners.
“These discussions are at a preliminary stage and no decisions have been made,” Superdry said in a statement.
Dunkerton possesses a 26% ownership stake in the company, which has seen its stock price decline significantly in the past few months due to the retailer facing challenges with subdued demand and a financial squeeze.
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The shares, part of the FTSE small cap index, surged by up to 127% to reach 48 pence on Friday. However, they remain significantly below their peak of over 2,000 pence in 2018.
Last week, Superdry conveyed its outlook, indicating a lack of anticipation for an improvement in market conditions in the near term following a challenging Christmas season. Alongside this announcement, the company disclosed that its Chief Financial Officer, Shaun Wills, is set to step down by the end of March.
The producer of jackets and apparel inspired by American vintage styles and Japanese-influenced graphics is collaborating with advisors to explore different options aimed at cost-saving measures.
According to Sky News, the company was exploring a radical restructuring that could involve significant numbers of store closures and job cuts.
“We are not surprised that these blend into options such as a possible offer from the founder/CEO, given he is the group’s largest shareholder and instrumental in the roadmap to recovery,” said Matthew McEachran, senior analyst at Singer Capital Markets.
“The sooner any cost restructuring can be the done the better. But this would need to be funded.”
