Superdry in Talks to Take Embattled Business Private

On Wednesday last week regulatory filings also showed Norwegian investment fund First Seagull had purchased a 5.3% stake in the company

Alliance News 5 February, 2024 | 9:05AM
Facebook Twitter LinkedIn


Clothing retailer Superdry is in talks to take itself private.

On Friday Sky News reported that Rcapital and Gordon Brothers have held initial talks about a bid, which would remove the company's shares from the London Stock Exchange.

Shares in the Cheltenham-headquartered company more than doubled on Friday to 46.15p each in London. However, over the last 12 months the stock has plummeted 63%.

On Wednesday this week regulatory filings were published showing that Norwegian-based investment fund First Seagull had purchased a 5.3% stake in the company.

On Friday, The Times also reported that First Seagull considers it "to be ripe for a bid."

The newspaper added that Sycamore Partners, an American private equity company, and Authentic Brands Group, which owns Ted Baker and Forever 21, are said to have Superdry on their radars.

"It's just a matter of time before there's an offer," a source told The Times.

This has progressed takeover rumours for Superdry.

What Has Superdry Said About The Reports

Following the article on Friday, Superdry responded to the share price movement.

Superdry Chief Executive Julian Dunkerton confirmed that he is in discussions with potential financing partners. This could include a possible cash offer for the entire issued and to-be- issued share capital of the company, not already owned by him.

"These discussions are at a preliminary stage and no decisions have been made," Superdry said.

"The transaction committee has provided limited additional information to Julian Dunkerton and the potential sponsors to facilitate further exploration of a possible offer for the company. There can be no certainty that an offer will be made, nor as to the terms on which any such offer might be made."

After market close on Friday, Sky News reported that Rcapital and Gordon Brothers have held initial talks with chief executive Julian Dunkerton about a bid to take Superdry private. Both specialise in investments in financially challenged companies.

"The talks are not yet at an advanced stage and people close to them cautioned that they may yet fall apart," Sky News said.

What is Superdry's Financial Performance?

Last week, Superdry released its interim results, saying challenging markets and poor weather had hurt earnings. The company also is set to lose another finance chief in March.

The retailer posted £219.8 million in revenue for the six months to October 28, down 24% from £287.2 million a year prior. It swung to a pre-tax profit of £3.3 million from a loss of £17.7 million on a statutory basis, but its adjusted pretax loss widened to £25.3 million from £13.6 million.

It also announced the replacement of its chief financial officer. Shaun Wills will step down after three years with the company on March 31. Giles Davis has been appointed interim chief financial officer. Come April, Davis will be Superdry's fifth chief finance officer in as many years.

By Sophie Rose, Alliance News senior reporter

Subscribe to Our Newsletters

Sign up Now

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Alliance News  provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures