A reported story from Sky News has said that struggling fashion retailer Superdry has called in advisors to look at its options for raising further cash via debt.
According to the report by Sky News, the company decided to consider taking on further debt after experiencing a difficult autumn season as a result of unfavourable weather that prevented customers from purchasing the clothing in which it excels. There was perhaps also the issue of the crisis in the cost of living.
In 2023, the brand already made moves to strengthen its balance sheet, such as launching new stock and closing agreements for intellectual property in India and Asia Pacific.
Its debt already exceeds its market value, and despite its declining share price, there is still talk that CEO and founder Julian Dunkerton may attempt to take the company private.
The company has not commented on the report as yet.
Based on the current share price, the company’s market value is barely £ 25 million, a far cry from the billions of pounds it had a few years ago. The news regarding its financial predicament is likely what caused the share price to drop by more than 15 per cent on Tuesday alone.
