Ready to propose: Julian Dunkerton with wife Jade
Superdry shares more than doubled after its founder said he was in talks to buy the fashion brand.
Julian Dunkerton shows his hand amid speculation that hedge funds are planning to attack the company he founded more than 20 years ago.
Shares began rising yesterday morning after Norwegian investment group First Seagull bought a 5.3 percent stake.
This sparked talk that it was planning a bid for a company that has been in decline due to profit warnings and a dramatic drop in its share price.
Superdry then revealed that Dunkerton himself had begun ‘exploring the possibility of making an offer for the company’.
Shares closed 118.2 per cent or 25p higher at 46.15p.
Dukerton, 58, is in discussions with companies that could potentially fund a deal. He owns a 20 per cent share of the business, after helping to set it up as a market stall in Cheltenham in 2003.
But Superdry said talks were at an early stage and no decisions had been made.
Dunkerton, who is married to fashion designer Jade Holland Cooper, has until March 1 to either make an offer or walk away from the process.
Businesses that could potentially finance a bid include Ted Baker owner Authentic Brands and high street giant Next, which has bought struggling retailers such as Juul and Fatface in recent years.
There has also been speculation that private equity firm Sycamore Partners, which owns luxury brand Kurt Geiger, might throw its hat in the ring.
Despite the share price rally yesterday, the stock is still down 98 percent from its 2018 peak and down more than 60 percent in the last 12 months. At its peak, the company was valued at £1.6 billion.
But Superdry has struggled in recent years and is worth just £45m.
After leaving the company in 2018, Dunkerton, unhappy with Superdry’s performance, returned as boss in a boardroom showdown a year later.
Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, said the new owners could ‘inject some life’ into the retailer.
Source: www.dailymail.co.uk
