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Shares in Superdry PLC surged on Friday, after the Times reported that takeover talks are heating up, following a difficult year for the embattled firm.
Shares in the Cheltenham, England-based clothes retailer surged 66% to 35.18 pence each in London on Friday morning. However, over the last 12 months the stock has plummeted 71%.
On Wednesday this week, Norwegian-based investment fund First Seagull bought a 5.3% stake in Superdry, according to regulatory filings.
On Friday, the Times reported that First Seagull considers Superdry ‘to be ripe for a bid.’
The newspaper added that Sycamore Partners, an American private equity company, and Authentic Brands Group, which owns Ted Baker and Forever 21, are said to have Superdry on their radars.
It‘s just a matter of time before there’s an offer, a source said to the Times.
https://www.thetimes.co.uk/article/hedge-fund-builds-stake-in-superdry-ppf03xxbj
On Monday this week, Superdry confirmed it is working with advisors to consider ‘the feasibility of various material cost saving options’.
Sky News on Saturday had reported that Superdry is working with PricewaterhouseCoopers on a restructuring plan that could involve store closures and job cuts.
The plan could involve a company voluntary arrangement, an insolvency mechanism that enables businesses to reduce their liabilities to creditors, Sky said without citing sources. This would allow Superdry to close underperforming shops and force through rent cuts, it said.
Superdry on Monday said the new cost review builds on the cost saving initiatives it has already carried out as part of its turnaround strategy.
On Friday last week, Superdry released its interim results, saying challenging markets and poor weather had hurt earnings. The company also is set to lose another finance chief in March.
The retailer posted £219.8 million in revenue for the six months to October 28, down 24% from £287.2 million a year prior. It swung to a pretax profit of £3.3 million from a loss of £17.7 million on a statutory basis, but its adjusted pretax loss widened to £25.3 million from £13.6 million.
It had also announced the replacement of its chief financial officer, with Shaun Wills stepping down after three years with the company on March 31. Giles Davis has been appointed interim CFO, joining Superdry on January 29, with an expected appointment on April 1. Davis will, come April, be Superdry’s fifth CFO in as many years.
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