Struggling Superdry looking to raise £15m with share sale
Struggling fashion firm Superdry is in advanced talks to raise £15m through a share sale.
The company confirmed this morning it is looking to raise the cash as it battles to inject more funds into the business.
The Cheltenham firm, which was founded by chief executive Julian Dunkerton, has issued a number of profit warnings in recent years and recently announced it is looking to make costs savings of more than £35m.
Dunkerton has confirmed he will personally invest in the business.
The company issued a statement this morning following a weekend of speculation.
The statement said: “Further to the Company’s announcement on 14 April 2023, the company confirms that it is in positive discussions with certain institutional and other investors with regards to a proposed equity fundraising of up to 20 per cent of the company’s issued share capital.
“Julian Dunkerton, the company’s founder and CEO, intends to significantly participate in the equity raise and provide a material underwriting commitment, reflecting his confidence in the long-term prospects of the business. ”
The business has been badly hit by a fall in customer demand and the poor performance of its wholesale business. It has also blamed poor weather for weaker than expected sales.
According to the reports over the weekend Dunkerton is in advanced talks with investors about the share raise. The entrepreneur recently announced that he would invest his own money from his personal fortune in any investment drive.
The company recently sold off the rights to its business in Asia Pacific in a deal worth £34m and has also extended its loan facilities.
Dunkerton owns roughly a quarter of the company and has estimated fortune of more than £400m.
Earlier this year, Superdry hired Interpath Advisory to help address its cost base.
Dunkerton launched the business in 2003 before being ousted in an acrimonious boardroom battle. He later returned to retake control of the business.
The company’s share value has fallen by almost 100 per cent over the last five years to 86 pence valuing Superdry at just under £70m. The share price rose slightly this morning following the announcement.
