Superdry founder, Julian Dunkerton, is reportedly exploring the possibility of a buyout offer for the fashion retailer. Dunkerton has engaged in talks with private equity firms to discuss the potential of taking the company private once again as its share price continues to struggle. However, it remains uncertain whether a takeover will come to fruition, as no active discussions or appointed advisors currently exist for a potential sale. As of now, Dunkerton holds a 23.9% stake in Superdry.

According to the Sunday Times, discussions have taken place this year that would involve Dunkerton rolling his stake into a new private vehicle that would assume ownership of Superdry. The driving force behind this potential buyout is Dunkerton’s belief that the current share price is undervalued. On Friday, the company’s shares closed at 105.5p each, resulting in a market capitalization of less than £87 million.

Superdry’s shares have been publicly listed on the London Stock Exchange since 2010. Although they have experienced fluctuations over the years, there was a time when they held significant value. However, the company has faced various challenges, and the share price began to decline even before the onset of the pandemic. Despite a brief surge to over £4 each in June 2021, the shares have since continued to dwindle, reaching a low value.

Following the publication of the Sunday Times report, the shares experienced a slight increase on Monday, trading at 106.6p, reflecting a rise of less than 2%. However, this marginal increment suggests that the buyout talks are not currently active. Dunkerton remains cautious about taking on additional debt and confronts opposition from activist investors who possess nearly 5% of the shares.

Despite the uncertainty surrounding a potential buyout, Superdry appears to be on a path to recovery. For the year ending April 30, the company reported a pre-tax profit of £17.9 million on sales amounting to £609.6 million. However, a major concern lies in the lack of an agreement on an extension for the company’s £70 million asset-backed lending facility, which is set to expire at the end of the following month.

In conclusion, Superdry founder Julian Dunkerton is contemplating a buyout offer for the struggling retailer. Although discussions have taken place, there are currently no active talks or appointed advisors for a potential sale. Dunkerton believes that the share price is undervalued, but obstacles such as the company’s debt load and opposition from activist investors must be addressed. Despite these challenges, Superdry has exhibited signs of recovery, but it faces a hurdle with its expiring lending facility.

Useful links:
1. Superdry Founder Is Said to Explore Buyout, Opening London M&A
2. Superdry founder Dunkerton looks to take it private, again: media reports