UPDATE 2-Superdry CEO explores taking over struggling retailer

(Adds background in paragraph 2-4; updates share movement in paragraph 7)

Feb 2 (Reuters) – Superdry’s top shareholder and CEO, Julian Dunkerton, is looking at making a possible cash offer for the shares he does not already own, among other options, the embattled British fashion retailer said on Friday.

Shares in Superdry had soared earlier on Friday to levels not seen since Oct. 25, 2023 after The Times newspaper reported that U.S. private equity company Sycamore Partners and Authentic Brands Group, which owns Ted Baker, had Superdry “on their radar”.

The share price has also been boosted by news on Wednesday that Norwegian alternative investment fund First Seagull took a 5.3% stake in the fashion brand.

Superdry in its statement did not mention speculation about an outside takeover, only referring to a potential cash offer by Dunkerton, possibly with financing partners.

“These discussions are at a preliminary stage and no decisions have been made,” Superdry said in a statement.

Dunkerton holds a 26% stake in the company, whose share price had been hammered in recent months as the retailer grappled with weak demand and a cash crunch.

Shares of the company, a FTSE small cap constituent, soared as much as 127% on Friday, leading gains across London stocks. They were last up 80.1% to 38.10 pence at 1128 GMT.

Last week, Superdry said it does not expect market conditions to improve in the near term after a tough Christmas season, adding that its finance chief Shaun Wills will step down at the end of March.

The maker of jackets and clothing inspired by American vintage styles and Japanese-inspired graphics, has also been working with advisers on various cost-saving options.

Sky News had reported the company was exploring a radical restructuring that could include substantial numbers of store closures and job cuts. (Reporting by Eva Mathews in Bengaluru; Editing by Sriraj Kalluvila and Susan Fenton)

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