Superdry in talks with investors over cash call
The group is reportedly close to finalising a £15 million share sale as it looks to bolster its balance sheet.
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Retailer Superdry has said it is holding “positive” talks with investors over an equity raise of up to 20% as it looks to shore up its balance sheet in the face of tough trading.
The chain said founder and chief executive Julian Dunkerton plans to “significantly” take part in the equity raise and offer a “material underwriting commitment”.
It comes after it was reported at the end of last week that it was in advanced talks over a £15 million share sale to bolster its finances.
The move marks its latest efforts to raise cash after it last month unveiled a deal to sell its intellectual property assets in Asia-Pacific to raise £34 million.
Superdry is also slashing costs, recently announcing aims to save more than £35 million, amid sales woes.
Earlier this month, it warned over profits for the second time this year after it admitted sales in February and March were disappointing.
Cost-of-living pressures had impacted consumer spending and visits to shops, while poor weather weakened demand for its new spring and summer collection, Superdry told investors at the time.
It therefore cut its revenue expectations and said it had withdrawn its previous profit guidance that it would broadly break even in the 2023 financial year.
The group said it plans to cut costs through actions such as “estate optimisation”, which could indicate store changes or closures, as well as logistics and distribution savings and continuing to reduce its clothing range.
The savings are expected to be made by the end of the 2024 financial year.
Mr Dunkerton founded the retail business in 1985 and currently owns a 23.9% stake in the company.
He recently denied speculation that he was considering taking the firm private.
Shares in the company have dropped by around 40% over the past year.