Superdry enlists PWC to “examine debt-raising options”

Struggling fashion retailer Superdry can’t seem to catch a break and following a profit warning just before Christmas, a news story on Tuesday said it has called in advisors to look at its options for raising further cash via debt.

Superdry isn’t commenting on the story so far.

The company currently has a market value of only £25 million based on its current share price, which is way below the value in the billions that it had just a few years ago when its shares were trading at close to £20 each. The share price fell over 15% on Tuesday alone, presumably in response to the story about its debt situation.

That story came from Sky News, which said that the move to look at raising further debt came after the company suffered a troubled autumn season due to the wrong kind of weather that meant consumers weren’t buying the outerwear in which it specialises. The cost of living crisis was also likely to have been an issue.

The brand had already taken steps to improve its balance sheet during 2023, including issuing new shares and striking intellectual property deals in Asia Pacific and India.

It debt is already much higher than its market value and while its share price struggles, there continues to be speculation that founder and CEO Julian Dunkerton might try to take it private.

What happens to the share price next could very much depend on what the company has to say when it issues an update about its Christmas trading, although it’s unclear when that will be available given it had already released an update only six days before Christmas.