Superdry buyout rumours see shares soar

Shares of struggling British fashion retailer Superdry (LSE: SPDRY) leapt 16% to 39.09p on Tuesday morning as speculation swirled of a potential buyout offer.

According to a report by Sky News, Superdry co-founder and CEO Julian Dunkerton is courting investors to help finance a bid to take the company private.

Among those reported to be in talks with Dunkerton is New York investment firm Davidson Kempner Capital Management, which Sky News said could inject fresh equity into a deal. UK turnaround specialist Retail Realisation is also said to be weighing up involvement.

Superdry shares have plummeted over 65% in the last 12 months as the retailer has warned of declining profits amid a “challenging trading environment.” But the prospect of a Dunkerton-led buyout offer has revived hopes for the British brand.

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In January, Superdry said it was reviewing “material cost saving options” in an effort to shore up its balance sheet. But Tuesday’s report signals a more radical solution could be in the offing.

For Davidson Kempner, a Superdry deal would expand its UK portfolio, adding to other British investments like children’s clothing retailer Jojo Maman Bebe and furniture chain Oak Furnitureland.