Is a Superdry takeover imminent?
Suspicions of a Superdry takeover grow after a new investor, First Seagull, began stakebuilding in the struggling retailer. According to a source, "It’s just a matter of time before there’s an offer".
According to regulatory filings, a Norwegian-based alternative investment fund has bought a 5.3% stake in the Cheltenham-based retailer. First Seagull is considering a bid for Superdry after a series of profit warnings over the past year drove down its share price.
First Seagull is an independent 'alternative investment fund' founded in 2022 by Stian Husvaeg, a fund manager who previously worked as an equity analyst at Norges Bank Investment Management and Morgan Stanley. According to its site, the company is "searching for investments where it’s safe and wise to non-diversify".
Also fuelling rumours, Superdry cancelled a planned meeting with investors yesterday.
Sycamore Partners, an American private equity company, and Authentic Brands Group, which owns Ted Baker and Forever 21, also reportedly have Superdry on their radars, according to The Times.
The value of Superdry owned by a brand management company could give it a valuation of £400 million to £600 million, compared with its present market cap of about £21 million.
The investment news prompted an immediate jump in Superdry shares of about a fifth and they closed up 7.7% last night.
In January, Superdry hired advisers from PricewaterhouseCoopers (PwC) to examine debt-raising options.
This came just weeks after Superdry's shares sank to a record low, blaming an "abnormally mild autumn" for delaying outerwear sales and causing a "challenging trading environment". In December, the company, best known for its logo-emblazoned hoodies and T-shirts, warned of a hit to its full-year profitability for FY24.
However, the company detailed several steps it took to strengthen its balance sheet. These included a modest equity raise and brand licensing deals in Asia-Pacific and India.
Over the past year, there has been speculation that Superdry's Founder, Julian Dunkerton, would take the company private. This came after he appointed Interpath Advisory, a restructuring firm, to advise on its "cost base and structure".
