Superdry CEO Dunkerton will not bid for fashion chain

Superdry CEO and top shareholder Julian Dunkerton will not be making an offer for the company, the parties said on Thursday, and the struggling British fashion chain also snagged an extension to a loan facility to help its turnaround plans.

Dunkerton, who holds a 26% stake in the company and is co-founder, had been in talks with Superdry over several options, including a possible cash offer for shares not already owned by him.

While a bid has been shelved for now, alternatives are still open as Superdry works on various cost-saving options to combat weak demand and a cash crunch over recent months.

“The company remains in discussions with Julian Dunkerton in respect of alternative structures, including a possible equity raise fully underwritten by Julian Dunkerton,” Superdry said in a statement.

The retailer on Thursday agreed to an extension of six months and an increase of up to 20 million pounds ($25.3 million) to its lending facility with Hilco Capital following discussions.

Its shares closed down about 5% on Thursday before the announcements, and have lost about 16% so far this year.