Superdry shares plunge to all-time low after founder drops takeover plans

02 April 2024 , 09:56

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Superdry founder Julian Dunkerton (Image: Copyright remains with handout provider)

Shares in Superdry have plunged to a fresh all-time low after its founder said he does not plan on making an offer to buy the business.

Investors reacted to the update which was shared on Thursday evening, before the extended Easter break, by the troubled fashion brand. Earlier this year, Julian Dunkerton, both the founder and Chief Executive of Superdry, it was revealed he was in discussions with US investors about a possible takeover of the business.

This news had initially increased Superdry's share price. However, by Tuesday morning shares had fallen nearly 50% down to around 13p per share. This drop signifies that shareholders were unhappy with the decision to halt takeover discussions. This is the lowest value for Superdry stocks since it started trading on the London Stock Exchange in 2010.

Superdry said on Thursday that a takeover deal was "unlikely to deliver an outcome for shareholders" currently working on efforts to revitalise the company and save cash. The company also highlighted it is considering other options, such as backing an equity raise, which could aid its recovery plan.

The fashion company, which has around 3,350 employees worldwide and runs 216 shops along with franchised stores, is exploring various methods to reduce expenditure in order to secure its future in UK high streets. Superdry describes the last year as being "exceptionally challenging" as weaker sales deepened losses.

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Mr Dunkerton, who co-founded Superdry in 2003 and still owns more than a quarter of the business, came back to lead the retailer in 2019. This was after a boardroom battle where he criticised the previous management for overseeing the chain's decline.

Lawrence Matheson