Superdry boss Julian Dunkerton reportedly mulling buyout

The founder and CEO of Superdry is reportedly considering selling the business after its share price has plummeted in the past year.

Julian Dunkerton, who currently owns 23.9 percent of the business, has held talks this year with private equity firms regarding a potential sale, according to a report by The Times.

However, one source said there were no active talks on a take-private deal and no advisers have been appointed for a potential sale.

It comes after the retailer announced last month it was close to closing a refinancing deal worth 70 million pounds as it looks to repay debts that are due in January 2023.

The company has been in negotiations with Bantry Bay Capital Limited, a firm backed by US hedge fund Elliot Advisors, to replace its existing asset-backed lending facility.

Superdry’s share price slumped over 60 percent in the past year against a challenging economic backdrop that has impacted the wider fashion retailer industry.

The London-listed company used to be one of the hottest brands on the UK high street, but has been hit in recent years by increasing online competition, and then subsequently the pandemic.

Founder Dunkerton left the business in 2018, but after being publicly critical of Superdry’s management team he returned just a year later in a contentious move that sparked mass board resignations.

Despite facing several challenging years, Superdry has shown signs of recovery in more recent trading.

In the year to April 30 2022, the company swung to an adjusted profit before tax of 21.9 million pounds compared to a loss of 12.6 million pounds a year earlier, as its revenue increased 9.6 percent to 609.6 million pounds.

Despite the results, however, the company warned of difficulties ahead against a backdrop of rising inflation and consumers tightening their purse strings.

For FY23, it expects its adjusted profit before tax to drop to between 10 million pounds and 20 million pounds.