Superdry enlists PwC to review debt options - report

(Sharecast News) - Superdry shares tumbled on Tuesday following a report the fashion retailer has enlisted one of the big four accountancy firms to advise on its finances in the wake of a pre-Christmas profit warning. According to Sky News, Superdry, which was founded by Julian Dunkerton, has appointed PricewaterhouseCoopers (PwC) to examine its debt-raising options.

The move to bring in new City advisers has emerged just weeks after the fashion brand's shares sank to a record low after it blamed abnormally mild autumn weather for weak sales.

Its latest profit warning, issued less than a week before Christmas, capped a year in which the company took a number of steps to strengthen its balance sheet. These included a modest equity-raise and brand licensing deals in Asia-Pacific and India.

Superdry already has sizeable debt facilities available to it, through arrangements with Hilco and Bantry Bay Capital worth a total of more than £100m.

Sky noted persistent speculation that Dunkerton, who owns roughly a quarter of Superdry's shares, would seek to take the company private. Just under a year ago, he appointed Interpath Advisory, a restructuring firm, to draw up cost-cutting plans for the business.

A spokesperson for Superdry declined to comment on the Sky story.

At 1438 GMT, the shares were down 18% at 24.06p.