Superdry confirms buyer exploration, shares surge

Amid a continued difficult trading period for Superdry, the chief executive officer of the British brand, Julian Dunkerton, has now confirmed that the company will be exploring a possible buyout, a move that was met with a surge in share price.

The decision was reported in a regulatory filing in which it was stated that Dunkerton had submitted a request to Superdry’s chairman for “permission to begin with exploring the possibility of making an offer for the company and to commence discussions with potential sources of finance”.

As such, Superdry formed an independent committee to consider the request, which has now been consented to, with Dunkerton stating that he was already engaged in discussions with possible financing partners for the “purposes of considering options in respect of the company”.

The filing noted that a cash offer for the entire issued share capital of Superdry was among the considerations, however added that the discussions were “at a preliminary stage” with no decisions yet to have been made.

Cost saving initiatives to continue

The news comes days after Superdry had further confirmed the appointment of advisors to “explore the feasibility of various material cost saving options” as part of its ongoing turnaround strategy.

This process is to continue going forward, Superdry now reaffirmed, yet it highlighted that while the company aims to “build on the success of the cost saving initiatives, there was also “no certainty that any of these cost saving options will be progressed”.

Prior to this, Sky News had reported that Superdry had appointed PricewaterhouseCoopers (PwC) to oversee plans that could lead to a company voluntary arrangement (CVA) or restructuring plan.

The media outlet noted that such a move could result in the closure of underperforming shops and a push for rent cuts, details that came just days after reports that PwC had also been tasked with exploring debt-raising options.

Superdry has continued to face falling sales over the past year, a sentiment that continued into its most recent half-year update when sales fell 23.5 percent, a drop the company had linked to a challenging consumer retail market. Sales within retail fell by 13.1 percent, while wholesale sales narrowed by 41.1 percent.