Superdry CEO Dunkerton will not bid for fashion chain (updated)
28/03/2024 17:32
(Writes through with details on funding, alternatives,
background and shares)
March 28 (Reuters) - Superdry SDRY.L CEO and top
shareholder Julian Dunkerton will not be making an offer for the
company, the parties said on Thursday, and the struggling
British fashion chain also snagged an extension to a loan
facility to help its turnaround plans.
Dunkerton, who holds a 26% stake in the company and is
co-founder, had been in talks with Superdry over several
options, including a possible cash offer for shares not already
owned by him.
While a bid has been shelved for now, alternatives are still
open as Superdry works on various cost-saving options to combat
weak demand and a cash crunch over recent months.
"The company remains in discussions with Julian Dunkerton in
respect of alternative structures, including a possible equity
raise fully underwritten by Julian Dunkerton," Superdry said in
a statement.
The retailer on Thursday agreed to an extension of six
months and an increase of up to 20 million pounds ($25.3
million) to its lending facility with Hilco Capital following
discussions.
Its shares closed down about 5% on Thursday before the
announcements, and have lost about 16% so far this year.
($1 = 0.7917 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Devika
Syamnath)
((Pushkala.A@thomsonreuters.com; X and LinkedIn:
@pullthekart;))