UPERDRY shares resumed trading today after being suspended due to an accounting error – and immediately crashed.
The already unfashionable shares lost a further 11% to 49.9p. This means the value of the company, which was once worth £1.6bn, is now just £48.5m.
The shares were suspended because auditors said they needed more time to complete financial statements.
While this may not be significant in itself, it increased the city’s concerns about the company’s future.
Founder and CEO Julian Dunkerton took the company public in 2010.
He returned as CEO in 2019, angry at what other bosses had done to the brand. He felt they had tarnished the clothing by relying too much on bright logos and fewer product lines.
Dunkerton admits it has been a “difficult year” for the company but insists the situation is improving.
A new flagship store on Oxford Street is well stocked. However, he laments that the area needs “serious help” to thrive as a shopping destination.
Superdry had to raise money at high interest rates and sell brand rights in Asia Pacific.
City analysts say the middle market is particularly tough for retailers right now. Ted Baker was sold to the US giant behind Reebok. Joules was rescued by Next.
Dunkerton itself owns around 25% of the shares. Last week the group reported an annual loss of £22m. However, sales looked good, rising 2% to £622m
https://www.standard.co.uk/business/city-fears-over-superdry-grow-as-shares-tumble-b1104696.html City fears for Superdry grow as shares fall