Power grab at Superdry
Investors back Dunkerton coup Directors quit in mass walkout Shares dive another 8.8pc
SUPERDRY founder Julian Dunkerton was reinstated as the fashion chain’s chief executive last night after a bitter power struggle saw almost the entire board resign.
At a dramatic showdown in the City of London, 51.5pc of shareholders backed his plan to return and revive its ailing fortunes.
The knife- edge decision marked a humiliating defeat for Superdry chairman Peter Bamford and chief executive Euan Sutherland, who quit along with six of the other seven directors.
The mass exodus followed a fivemonth public battle between cofounder Dunkerton and bosses at the fashion chain he set up in 2003.
Seizing the job as chief executive last night following his victory, Dunkerton outlined plans to ‘rebuild the Superdry brand and the business’, adding: ‘The hard work starts now.’ But the company’s shares fell 8.8pc, or 48p, to 500p.
Dunkerton, Superdry’s largest shareholder with an 18.4pc stake, left the business in March last year to pursue other business interests. But it has since suffered a decline in sales and profits, sending shares down almost two-thirds.
He and co- founder James Holder accused Sutherland and his top team of presiding over a ‘catastrophic’ fall in the share price, blaming a change in strategy for hitting sales.
Superdry has cut the number of products it stocks and shifted production to the Far East to save money. It has also launched a childrenswear range which Dunkerton is expected to ditch. The row climaxed yesterday after Dunkerton demanded shareholders vote on his plans to return and turn around its fortunes.
As well as backing him, they also approved his plan to appoint former Boohoo chairman Peter Williams to the board.
The coup sparked a string of resignations as finance boss Ed Barker and remuneration committee chairman Penny Hughes followed Sutherland and Bamford out of the door. Four other directors – Dennis Millard, Minnow Powell, Sarah Wood and John Smith – handed in their notice and step down on July 1.
Superdry’s corporate brokers UBS and Investec also quit.
Company secretary Simon Callander is the only board member to remain. Williams has now stepped in as chairman, with Dunkerton appointed interim chief executive.
Bamford noted that 74pc of investors other than Dunkerton and Holder, who own 28pc of shares between them, had voted against the proposals.
Institutional investors Investec, Schroders and BBVA are thought to have backed Dunkerton.
Dunkerton, who is married to 32-year- old designer Jade Holland Cooper, said the turnaround is likely to take two years.
‘There may be a bit of turbulence in the beginning but it won’t be as dramatic as anyone has said,’ Dunkerton said.
‘We will point this company back in the right direction, quickly and efficiently. The opportunities are greater now than they were two years ago.’
At a stormy meeting, Superdry shareholders lashed out Sutherland and his team.
Chas Howes, who is a former Superdry finance boss and owns 64,000 shares, accused the company’s bosses of ‘ lining their pockets’ while presiding over a poor performance.
‘ Financial performance has been appalling,’ Howes said.
‘You recently bought shares [at] under £4, deliberately taking advantage of a disaster you have created when minority shareholders have suffered.’
John Olive, an individual investor, added: ‘Frankly the board should depart, let us move on, bring Mr Dunkerton back and let’s have some sense about the business that we’re in.’
Dinesh Jain accused Sutherland and Bamford for failing to take responsibility.
He said: ‘It’s as if everything is Julian’s fault and nothing is your fault and you have refused to accept responsibility.’