UPERDRY shares resumed trading today after being suspended over an accounting snafu – and immediately plummeted.
The already out of fashion shares lost another 11% to 49.9p. That leaves the company, once worth £1.6 billion, valued at just £48.5 million.
The shares were suspended because auditors said they needed more time to finalise the accounts.
While that in itself may not be significant, it added to concerns in the City about the future of the business.
Founder and CEO Julian Dunkerton floated the business in 2010.
He returned as CEO in 2019 in anger at what other bosses had done to the brand. He felt they had tarnished the clothes with an over reliance on garish logos and fewer product lines.
Dunkerton admits it has been a “difficult year” for the company, but insists it is improving.
A new flag ship store on Oxford Street is well stocked. He complains that the area needs “serious help” to thrive as a shopping destination however.
Superdry has had to raise money at high rates of interest and sold brand rights in the Asia-Pacific.
City analysts say the middle market is particularly tough for retailers at the moment. Ted Baker was sold to the US giant behind Reebok. Joules was rescued by Next.
Dunkerton owns about 25% of the stock himself. Last week the group reported an annual loss of £22 million. Sales looked healthy however, up 2% at £622 million