Struggling Superdry hires PwC to review debt options

[ad_1]

The fashion retailer, which has a market value of just £30m, has drafted in advisers to examine further debt-raising options following a pre-Christmas profit warning, Sky News learns.

By Mark Kleinman, City editor @MarkKleinmanSky


Superdry, the London-listed clothing retailer, has enlisted one of the big four accountancy firms to advise on its finances in the wake of a pre-Christmas profit warning.

Sky News has learnt that Superdry, founded by Julian Dunkerton, has appointed PricewaterhouseCoopers (PwC) to examine its debt-raising options.

The move to bring in new City advisers has emerged just weeks after the fashion brand’s shares sank to a record low after it blamed abnormally mild autumn weather for weak sales.

Its latest profit warning, issued less than a week before Christmas, capped a year in which the company took a number of steps to strengthen its balance sheet.

These included a modest equity raise and brand licensing deals in Asia-Pacific and India.

Superdry already has sizeable debt facilities available to it, through arrangements with Hilco and Bantry Bay Capital worth a total of more than £100m.

On Tuesday, shares in Superdry were trading at around 29.95p, giving the company a market capitalisation of less than £30m.

There has been persistent speculation that Mr Dunkerton, who owns roughly a quarter of Superdry’s shares, would seek to take the company private.

Just under a year ago, he appointed Interpath Advisory, a restructuring firm, to draw up cost-cutting plans for the business.


This is a limited version of the story so unfortunately this content is not available.

Open the full version

Superdry has yet to update on its Christmas trading performance, although analysts believe the colder weather may have delivered a boost to sales.

A Superdry spokesman declined to comment on PwC’s appointment.



[ad_2]

Source link