Shares in fashion retailer Superdry (LSE: SDRY) jumped 108% by Friday lunchtime after the company confirmed it is in preliminary discussions regarding a possible cash offer to take the business private.
The embattled British clothing company has endured falling sales and profits recently, with shares down over 85% prior to takeover speculation emerging this week. However, Superdry stock skyrocketed after Norwegian investment fund First Seagull bought a 5.3% stake on Wednesday, leading to market rumours of a potential bid from American private equity firm Sycamore Partners or brand management company Authentic Brands.
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Superdry CEO Julian Dunkerton, who owns an 18.5% stake in the retailer, verified on Friday that he is speaking to prospective financial partners about a possible offer to take the company private. But he cautioned that discussions remain at a “preliminary stage” and no decisions have been finalised regarding a formal offer.
The update comes as Superdry works with advisers on potential cost-cutting options including store closures. While restructuring efforts aim to return Superdry to profitability after recent losses, takeover speculation has sent shares soaring as investors bet on a buyout offer materialising.
