Following a recent profit warning just before Christmas, beleaguered fashion retailer Superdry is reportedly seeking financial advice to explore options for raising additional funds through debt. The company, currently valued at £25 million, has seen a significant drop from its previous market value in the billions. Shares plummeted over 15% on Tuesday in response to the news about its debt situation, with the company remaining tight-lipped on the matter.
According to reports from Sky News, Superdry’s decision to consider raising more debt comes after a challenging autumn season impacted by unfavorable weather conditions and the ongoing cost of living crisis, affecting consumer demand for its specialized outerwear. Despite efforts to strengthen its financial position in 2023, including issuing new shares and entering intellectual property deals in Asia Pacific and India, the company’s debt surpasses its current market value.
The share price decline has fueled speculation about the potential privatization attempts by Superdry’s founder and CEO, Julian Dunkerton. The company’s next move and its impact on share prices may hinge on an upcoming update about its Christmas trading performance. However, the timing of this update remains uncertain, given the release of a previous update just six days before Christmas.
