Dunkerton walks away from talks to take ailing Superdry into private hands

The founder of ailing fashion firm Superdry has walked away from negotiations to take the firm into private hands.

Julian Dunkerton, the chief executive and founder of the Cheltenham company, has ended his two-month talks to buy the business he launched.

Dunkerton, who set up the company in 1985, approached the board in February over a possible offer for shares he does not already own.

Superdry said Dunkerton, who has a 26 per cent stake, had walked away from takeover talks.

Dunkerton  and the board has concluded that any offer made was unlikely to be enough to help the firm deliver its turnaround and cost-saving plans.

Shares sank 5.1 per cent, or 1.55p, to 28.8p after the news was made public.

Superdry sounded the alarm over its finances in January when its first-half results showed a sharp drop in sales.

The cost of living crisis has seen customers cutting back on online spending.

Superdry has confirmed that it is in talks with the restructuring firm Hilco over increasing its lending facilities by around £10million, as it seeks to save £40 this year.

The company has also sold of its brand rights in the Far East to raise extra cash.