Superdry chief executive and co-founder Julian Dunkerton is in talks with investors as he mulls a takeover of the struggling fashion retailer.
According to Sky News, Dunkerton is in talks with Gordon Brothers, which owns Laura Ashley, and Rcapital, which previously owned Paperchase, about backing his take-private bid.
Both firms specialise in investing in financially challenged firms.
However, it stressed that talks were at a preliminary stage and no decisions had been made.
Dunkerton has until close of business on 1 March to announce whether he intends to make an offer for Superdry.
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Speculation about a possible take-private deal increased this week after it emerged that Norwegian hedge fund First Seagull had snapped up a 5.3% stake in the hope of a buyout.
It is thought that the investor considers the fashion retailer to be ripe for a bid following various profit warnings over the last year knocking down its share price.
Superdry’s share price has plunged 64% over the past 12 months, extending to 91% since 2019.
Dunkerton admitted last week that the retailer is facing a “difficult period” ahead after it posted widening losses.
Softer trading resulted in Superdry’s adjusted pre-tax loss widening from £13.6m to £25.3m in the six months to 28 October, after sales plunged 23.5% to £219.8m.
The business is currently working with PwC advisers to explore its options, including a company voluntary arrangement or other forms of restructuring, under a move that could lead to job cuts and store closures.
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