Superdry shares tumble after founder drops takeover plans

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.

Co-founder and chief executive Julian Dunkerton had been in talks with US investors earlier this year about potentially buying the business and taking it private, which had initially given its share price a boost.

But shares tumbled by nearly 50% on Tuesday morning to lows of around 13p per share, in a sign that shareholders were unimpressed by the takeover talks being abandoned.

It is the lowest price since the company began trading on the London Stock Exchange in 2010.

Superdry said on Thursday that a takeover offer was “unlikely to deliver an outcome for shareholders” amid work taking place to revive the business and save money.

It stressed that it was still mulling over other actions such as potentially underwriting an equity raise, which could support its turnaround plan.

The fashion business, which employs around 3,350 people globally and runs 216 shops alongside franchised stores, has been looking at various ways to cut costs to secure its future on Britain’s high streets.

It followed a year the company described as “exceptionally challenging” as sales weakened and losses deepened.

Mr Dunkerton returned to lead the retailer in 2019 after a boardroom battle which saw him criticise the previous management for presiding over the chain’s decline.

He co-founded Superdry in 2003 and still owns more than a quarter of the business.