The Julian Dunkerton-founded clothing retailer could disclose plans to raise more than £10 million through a share sale as early as next week.
Superdry is in advanced discussions regarding a near-£15 million share sale as it scrambles to bolster its balance sheet amid challenging trading conditions.
After discussions with City financiers, the chain led by founder Julian Dunkerton could announce a cash call as soon as the following week.
The decision is part of Mr. Dunkerton’s efforts to revive Superdry’s performance and follows last month’s announcement that the company had reached an agreement to raise £34 million from the sale of its intellectual property assets in Asia-Pacific.
Superdry recently warned that sales growth had fallen short of boardroom expectations, citing “external factors such as the cost-of-living crisis having a significant impact on spending and footfall, and poor weather resulting in less demand for our new spring-summer collection” as the cause.
Mr. Dunkerton, who owns approximately a quarter of the company, has already committed to supporting an equity raise; however, it was unclear on Friday which of the company’s other major shareholders would do the same.
One investor estimated that the cash offer would be worth “more than £10m” and possibly closer to £15m.
Superdry engaged Interpath Advisory earlier this year to assist with its cost structure, and it announced this week that it has secured an amendment to its borrowing terms with Bantry Bay, which provided £80 million in financing to the retailer in December.
On Friday, the stock price was approximately 86 pence, giving the company a market capitalization of only £69 million.
Persistent rumors suggest that Mr. Dunkerton may make an offer to take the company private.
The founder of Superdry, who founded the company in 2003 before being ousted and returning to the helm, stated in February that he had “no plans to do this at this time.”
With Superdry board approval, Mr. Dunkerton might make an offer despite the City takeover code.
