Superdry shares have dropped by more than half after founder Julian Dunkerton walked away from a takeover bid.
The chief executive revealed on Thursday that he would not be submitting a take-private deal after spending the last few months attempting to raise funds.
Shares for the ailing fashion retailer opened at 15p on Tuesday morning – a 48% drop on Thursday’s closing price of 28.95p– and have continued to sink to 13.69p in the afternoon.
Dunkerton, who owns a 20% stake, approached the board in February over a possible offer for the company’s remaining shares.
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He is understood to have approached investors, including Laura Ashley owner Gordon Brothers and Oakfurnitureland backer Davidson Kempner, about backing his take-private bid.
Despite a takeover bid no longer on the table, Superdry said it remained in discussions with Dunkerton about alternative structures, including a possible equity raise fully underwritten by the founder, which it said would provide additional liquidity headroom for its turnaround plan.
It said on Thursday that any equity raise would be at “a very material discount” to its share price at the time and be conditional on a de-listing of the company.
The chief executive said in January the business was 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.
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