A US investment firm has started talks about a possible takeover of Superdry. The struggling high-street fashion chain is in dire need of a new owner.
City investors reacted positively to the news that Superdry would be removed from the stock exchange and turned into a private company.Shares of Superdry rose sharply from 39 1/2p (5 3/4p) by 17.4 percent.
Davidson Kempner is in talks with Julian Dunkerton the co-founders of Superdry. Sky News reports that the talks are still in their early stages, and no deal is guaranteed.
Investor previously backed other British retailers including Jojo Mamman Bebe, Oak Furnitureland, and New Look. Dunkerton, who is 58 years old, has also been reported to be in discussions with Rcapital, Gordon Brothers, and Gordon Brothers about a possible Superdry rescue.
Superdry’s stock price has dropped significantly in the last year due to a series warnings about profit. The company has hired PwC advisers to look at a possible restructuring. Superdry has more than 200 shops and employs around 3,350 people. Brand also has 369 licensees and franchisees.
Last year, the company said that it was “materially uncertain” about its ability stay afloat after it suffered a loss in excess of £148.1million. Hilco was asked to provide an emergency loan for £25 million, on top of the Bantry Bay Capital facility for £80 millions that had been agreed last year.
Dunkerton, who returned to Superdry after it was targeted by activist shareholders five years ago, has since tried to revitalize the brand with partnerships that include Neymar, a Brazilian footballer and Brooklyn Beckham the son of David Beckham – the former England captain.
The business has struggled to recover its footing following the pandemic, and is dealing with poor performances in its wholesale division. The suspension of its shares was due to the delay in publishing its full-year financial results. Dunkerton, the CEO of the company at the time it published its results in September last year, said that the brand had experienced a “tough” year. He said: “It’s a tough year. We’ve had rents to catch up with, stabilise the turnover, and get our balance sheet in order.” It hasn’t always been easy.