Superdry’s co-founder Julian Dunkerton is considering buying back Superdry, according to a regulatory filing shared with investors.
The note confirms that Dunkerton is working with possible investors on the company’s cash offer. However, the note adds that the talks are at a preliminary stage and that no decisions have been made.
The news comes shortly after Superdry confirmed it is exploring cost-saving options to turn around the struggling brand.
British retailer Next owns the FatFace, Reiss and Joules brands and is reportedly in talks with Dunkerton on the Superdry purchase. The co-founder is also speaking with Authentic Brands, which owns Ted Baker, Juicy Couture and Forever 21.
Neither Next nor the Authentic Brands Group had responded to Just Style’s request for comment at the time of writing.
The news also comes shortly after Superdry announced its intention to sell its India, Sri Lanka and Bangladesh intellectual property licenses and brand assets to Indian retailer Reliance Brands Holding UK Ltd for £40m ($48.4m).
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GlobalData’s associate apparel analyst Alice Price told Just Style: “Speculation of a potential buyback of Superdry by Julian Dunkerton comes after the ailing fashion brand continues to report dwindling sales and a shrinking share price.
Price added that Superdry’s woes largely began after co-founder Dunkerton’s initial departure in 2018, and have continued despite his return in 2019, with the company losing 80% of its value. She explained: “Superdry remains blighted, having struggled to modernise its product offering and align with current trends. As acting CEO with a 20% stake in the business, Dunkerton’s influence has yet to deliver results for the struggling brand.”
However, Price added that the possible talks with UK fashion giants to join the takeover could be positive news for the company. She said: “With Authentic Brands and Next cited as potential backers, the injection of funds may help Dunkerton successfully deliver his turnaround plans.”
Price suggested: “To steer Superdry back to relevance, Dunkerton should look to likes of Hollister and Abercrombie for insight into how to successfully turn around a struggling business, after both brands managed to shake off their outdated early 2010s aesthetic to regain relevance among fashion-forward Gen Z and millennial shoppers.”