Superdry founder Julian Dunkerton will not make an offer for the retailer despite attempting to raise funds for a take-private deal.
However, the fashion chain remains in discussions with Dunkerton regarding alternative structures, including a possible equity raise fully underwritten by the Superdry founder, which it said would provide additional liquidity headroom for its turnaround plan.
It is expected that any equity raise would be at “a very material discount” to the current share price, and be conditional on a de-listing of the company.
The retailer said: “Following a period of engagement, the transaction committee and Julian Dunkerton have, together, concluded that a takeover offer from Julian Dunkerton for Superdry is unlikely to deliver an outcome for shareholders, or stakeholders more broadly, that the transaction committee and Julian Dunkerton are confident can be executed in the context of the company’s ongoing work on its turnaround plan and material cost saving options.”
The company said there can be no certainty that a transaction with Dunkerton will be agreed and a further announcement will be made as appropriate.
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Dunkerton, who owns a 20% stake in the retailer, had been in discussions with “potential financing partners” to fund a cash offer for the business and had been set a deadline to make an offer by 29 March.
He was understood to be in talks with investors, including Laura Ashley owner Gordon Brothers and Oakfurnitureland backer Davidson Kempner, about buying up the shares he does not already own.
Talks of takeover deal emerged after Superdry posted widening losses earlier this year and revealed its CFO Shaun Wills had quit the business.
The embattled fashion retailer’s sales plunged 23% to £219.8m in the half to 28 October, which it blamed on a challenging retail market, unseasonable weather and underperformance of its wholesale segment.
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