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Superdry was once one of the most fashionable street fashion brands, renowned for the financial performance of its investors, but today is the scene of one of the biggest crises in the city, while its founders are fighting a more and more bitter battle for control its management.
Julian Dunkerton, co-founder of the multi-billion dollar company, resigned a year ago. He was, he said at the time, leaving the mark – favored by celebrities such as David Beckham and Idris Elba – in good hands, to devote himself to the family cider trade and a small chain of pubs. and charming hotels.
The couple is fighting for the future of the fashion brand
Euan Sutherland, Executive Director of Superdry
Sutherland is better known for the way he left the cooperative group than for managing Superdry.
Scotsman, 50, was angered by the crisis-hit mutual in 2014 after details of his £ 3.6m pay deal were leaked to the Observer. He immediately went to the Facebook page of the cooperative to rage against the people who were trying to undermine him and resigned the next day, blaming the Manchester-based group for being "ungovernable" in his letter of resignation. He then received a gain of 1 million pounds.
Sutherland began as a graduate trainee at Boots, but soon moved on to the consumer goods giants Mars and Coca-Cola. He worked in chains of major chains, including Dixons, Matalan and Superdrug, to access the highest position of B & Q before joining the cooperative.
Julian Dunkerton, co-founder of Superdry and largest shareholder
Dunkerton is Mr. Superdry. A self-taught multimillionaire thanks to the success of the streetwear brand, Dunkerton made his way selling clothes in a market stall in Cheltenham. His first chain of retailers called Cult Clothing, but things started in 2003, when he created Superdry with designer James Holder. Known for its hoodies and t-shirts with Japanese-inspired graphics, the first Superdry store opened in 2004. It launched a period of strong growth that led to a stock market float in 2010.
After three decades in the fashion industry, Dunkerton's role in the Superdry base in Cheltenham became less practical after hiring Sutherland as general manager in 2014. Last March, he resigned to focus on his other projects including a small group of high-end pubs. and hotels in the Cotswolds and the Dunkertons cider house. However, it appeared later that there had been a conflict over the strategy.
The 54-year-old is revered by a former staff member who praises his fashion and generosity. The company's recent problems have erased the value of its stake of more than £ 230 million by 18.5%.
Zoe Wood
But the price of the Superdry stock fell in free fall. There was a series of warnings about the benefits and the real reasons for Dunkerton's departure were mentioned: it was a messy strategy. The new management team, led by General Manager Euan Sutherland, was looking to get rid of the sale of the superdry-branded hoodies and t-shirts that contributed to Superdry's success, while Dunkerton was keen to follow its proven strategy.
It's easy to see why Dunkerton is angry. Superdry shares were worth £ 20.39 early in 2018 but now change hands for £ 5.32. The value of its 18% interest has decreased by more than £ 230m and the market value of the company has declined so much that it has been excluded from the FTSE 250 Index.
Dunkerton wants to regain control. On Thursday, he took up the challenge in his campaign to be reinstated on the board of directors, writing an open letter to shareholders and using his website, Save Superdry, to define a strategy that, in his view, will help redress a which he says will quickly be misdirected. direction.
Dunkerton insists in his letter: "I understand the mark. I created it with James Holder [the designer]and we have achieved sustained and profitable organic growth over many years and can do it again. We care about the future prosperity of Superdry, its employees, the brand and its customers. The holder owns almost 10% and supports Dunkerton.
Dunkerton says the brand has become an innovative brand, renowned for its Japanese graphics and American influences, to a model based on a "misguided business model headed by consultants".
Dunkerton has requested and obtained a shareholder meeting to be held on April 2 in London to resolve the problem. He is also looking to install Peter Williams, president of online fashion retailer Boohoo and former boss of Selfridges, as a non-executive director to work alongside him.
While the company and other shareholders resisted Dunkerton's new offering, the war between the entrepreneur and the company went from behind closed doors at its Cheltenham headquarters to the public domain. While Dunkerton once celebrated the transfer of power to Sutherland, the entrepreneur is now hearing about his lack of experience in the fashion industry.
"It's about people who are out of their depth," Dunkerton told the Guardian in December. "In the best team, there is no one who has experience in clothing or brand, and this is a major problem." He cites the recent pbadage to children's fashion as an excellent example of their indifference. He would cancel it, arguing that it would destroy the "cold factor" for 16-24 year olds.
A Superdry store in London. Cost reduction plans have reduced staff morale. Photography: Toby Melville / Reuters
While the company strongly believes that Dunkerton is the problem and not the solution, the Save Superdry website has become a lightning rod for private shareholders, current staff and former employees, who must decide on the state of play. society.
Morale has been affected by cost reduction plans. At least 200 of the 1,000 employees at Cheltenham headquarters could lose their jobs as part of a larger plan to reduce operating costs by £ 50 million over the next three years.
One of the most critical critics of Save Superdry's current leadership is former creative director James Meigh, who left last year. He says Sutherland has a "supermarket" mentality that fueled the brand's descent into "the hell of the discount."
"Superdry was founded in a recession. He was simply extremely creative and unaffected by the trends on the high street … with an obsession for details and quality, which are disappearing as we speak, "Meigh said in his message. "Yes [Dunkerton] he wanted Superdry to be next, but he wanted a cool brand. Euan [Sutherland] will never understand creative or cool. "
Ian Keely, a small shareholder, has purchased the Superdry share register and plans to write to the 600 or so shareholders of the company before next month's meeting. Keely fears that institutional investors are apathetic and have not engaged properly in the debate. "Who would not want to welcome Steve Jobs and Steve Wozniak again from the British fashion world?" Said Keely, who is trying to rally support from small shareholders, who together hold 13% of the company. "We can make a real difference," he added.
The only people who do not seem to think Dunkerton is a genius are in the conference room. The current directors unanimously recommend that shareholders vote against the appointment of Dunkerton and Williams. Large institutional investors would rally behind management.
On Thursday, the company retorted that there was "little new information" in the Dunkerton letter to shareholders and described its turnaround plan as very detailed. He also criticized his "leadership style", claiming that he "does not fit the culture of open collaboration, values and functioning of society". His return, they say, would have "damaged morale", led to "dysfunctional relationships" and prompted key people to stop smoking.
The board said it also received an unsolicited letter, signed by 31 senior executives, expressing support for the strategy and current leaders.
A spokesperson criticized those who posted on the Dunkerton website: "We always listen to all views, but many who provide insubstantial comments and opinions on the Save Superdry website are friends and business partners of MM. former employees of Superdry. "
Dunkerton, however, will not give up, his own financial losses prompting him to continue. "Our interests are directly aligned with those of all shareholders," he said. "It's not an ego trip."
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