Superdry’s shake-up takes an unsavory turn

Designer chic: Superdry’s co-founder Julian Dunkerton with his wife Jade Holland Cooper

Superdry co-founder Julian Dunkerton experienced a significant decline of £7 million in his stake in the business over a span of three months. This loss far surpasses the amount he earned in pay and bonuses during his tenure as the company’s chief executive.

Dunkerton, 58, currently owns over a quarter of the Japan-inspired retailer, which was once a prominent name on the high street. At its peak, the company had a valuation of £1.6 billion and its jackets were endorsed by footballer David Beckham and actor Idris Elba.

However, Superdry has faced difficulties in recent years, and its value has plummeted to just £55 million.

In delayed financial results released on Friday, Dunkerton acknowledged another challenging year for the business. The company incurred a loss of £148 million and witnessed a drastic increase in debt.

Superdry has been plagued by rumors of a potential privatization and concerns about its future viability.

During Dunkerton’s last stock purchase in May, his stake in the group was valued at around £21.5 million. At that time, the company’s share sale raised £11 million to strengthen its balance sheet.

However, over the summer, the company’s shares plummeted, resulting in a £7 million loss in Dunkerton’s holding. This decline even exceeds the amount of £4.7 million he earned during his 11-year tenure as chief executive at Superdry, which he co-founded in 2003 alongside James Holder.

Dunkerton, who married designer Jade Holland Cooper in 2018, guided Superdry through its London Stock Exchange listing in 2010 and served as chief executive until 2015. He remained on the board but left the company in 2018. However, he made a comeback as chief executive in 2019 following a board overhaul due to disappointment with the company’s performance.

During his second stint as chief executive, Dunkerton has demonstrated a commitment to revitalizing Superdry’s design strategy by placing a greater emphasis on the hoodies and jackets that made the company famous.

A source close to the business stated, ‘Julian has a deep belief in the brand, which is why he underwrote the equity raise and continues to purchase shares in the company.

‘Although it has been an immensely challenging period, the balance sheet issues have now been addressed, and Julian is highly optimistic about the new product offerings that are in development.’