Shares in Superdry soar amid reports of US investment

Shares in Superdry rose steeply following news that founder Julian Dunkerton is in talks with US investors.

The Cheltenham company has been struggling with huge debts and falling sales over the last 12 months.

And after months of speculation it was confirmed that Dunkerton is considering bringing the fashion chain back into private hands.

The firm has also signalled that it is looking to cut costs and close stores as it struggles to balance the books.

In a bid to raise cash Superdry has also sold the rights to its brand in the Far East.

According to reports New York investment management firm Davidson Kempner is in discussions  Dunkerton over potentially backing a deal to take the brand private.

According to reports the talks are at a preliminary stage and there is no guarantee of an agreement between the parties.

The business, which employs around 3,350, has 216 shops and a number of franchised stores.

Superdry is is working with PwC to assess options to secure the future of the business and reduce its debts.

Dunkerton has also reportedly held initial talks with fellow investment firms Rcapital and Gordon Brothers over potential deals.

Superdry shares were 18.5% higher on Tuesday afternoon following the speculation.