Struggling Superdry hires PwC to review debt options

January 16, 2024

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.

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.

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