Rumours Superdry founder is looking to get back into firm
JULIAN Dunkerton is reportedly mounting a campaign to return to Superdry after the share price plumetted.
The tycoon told the BBC he is talking to shareholders about a comeback which is backed by his former designer James Holder.
News of what could end up being a boardroom battle over the direction of the company came days after he publicly criticised the new strategy towards faster fashion.
Although Mr Dunkerton stepped down as chief executive in 2014 and left the board in March, he remains its biggest shareholder and lost millions of pounds when the share price plunged from almost £20 in January to £7.29.
His 18.5 per cent stake reportedly dropped in value by £32.5million to £121million.
Now business journalists are reporting that he has hired the broker Cenkos to help him take back control of Superdry and reverse what he described as a failing strategy.
Mr Dunkerton told the BBC he was offering to return to Superdry “in any capacity” because he believes the policy of putting new products in its stores more frequently is misguided.
“Superdry is a series of core products - stick with them and tweak them,” he said urging the company to go back to hoodies and jackets.
“This is just about the strategy - it’s not about ego,” he said.
“The ship needs to turn and it needs to turn quickly.”
According to the financial press Mr Dunkerton raised £71million in July by selling 5.5 million shares at £12.85 a share, reducing his stake from 25.2 per cent to 18.5 per cent.
After he married fashion designer Jade Holland Cooper in August, with guests including singer Craig David and actor Idris Elba, Mr Dunkerton denied he planned to retire.
But he said he was stepping aside from Superdry to concentrate on his other business interests such as Dunkerton’s Cider and his Lucky Onion property portfolio, as well as launching new businesses in the county and supporting the campaign for a new Brexit referendum.
But the 53-year-old now says the original founders of Superdry, which started in Cheltenham 15 years ago, could no longer stand back and watch as the shares continue to fall.
Mr Holder, who holds a 10 per cent stake in the business, agreed and told The Times Superdry needed to act quickly to “restore the share price to its previous level as quickly as possible.”
He said it would require an “urgent sea change in strategy” to challenge on-line brand Asos.
However, Aberdeen Standard Investments, which is the second-largest shareholder in Superdry with a 10.6 per cent stake, has criticised Mr Dunkerton for failing to make contact before going public with his campaign.
Frederik Nassauer said: “Euan Sutherland was appointed chief executive in 2014, as Julian decided to step aside as chief executive after several profit warnings.”
A source at the company even told the Times that Mr Dunkerton’s bias towards jackets and sweaters had contributed to the stock overhang that formed part of the profit warning.
Peter Bamford, chairman of Superdry said: “We have reviewed and discussed these issues and, while we have sympathy with some of his points, we have a different view on the best strategy or approach to addressing them,” he said.
“The board believes that Julian’s view of strategy has not evolved with the needs of the business. We remain fully committed to our successful global digital brand strategy and the board is confident that Superdry has in place the right leadership.”
Now it looks as if other major shareholders could decide if Mr Dunkerton will return to the company which is now worth just under £600 million.
Old Mutual, Artemis and Blackrock have stakes of 7 per cent, 5 per cent and 4.7 per cent respectively but have yet to make any comment say the BBC.
Independent observers say the next few months could crucial for the company with the profit warning possibly leading to “significant questions over the true strength of its brand”.