Fashion chain Superdry has announced that it is planning to raise about £15m.
The Cheltenham firm issued a warning earlier this month (April 14) saying that it needed to cut costs by more than £35m after seeing dampened consumer spending. And last week (April 25) it extended its loan facility with Bantry Bay, which was at £80m in December 2022.
The retailer, which was founded by chief executive Julian Dunkerton has issued a number of profit warnings in recent years. Mr Dunkerton, had previously said he would fully support a potential equity raise of up to 20%.
The brand has now confirmed that it is in "positive" talks with investors regarding the equity raise.
Responding to a media report that the company planned to raise about £15m, Superdry said Mr Dunkerton plans to participate in the equity raise and provide a material underwriting commitment. Shares in Superdry have fallen 33% so far this year. ($1 = 0.8008 pounds).
The retailer 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% of the company’s issued share capital.
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“Julian Dunkerton, the company’s founder and chief executive, 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."
Mr Dunkerton started out selling clothes on a Cheltenham market stall, launched Superdry with the designer James Holder in 2003. Their first store opened in 2004 and the company grew rapidly before listing on the stock exchange six years later.
The company’s share value has fallen by almost 100% over the last five years to 86 pence valuing Superdry at just under £70m. The share price rose slightly this morning following the announcement.
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