Superdry fights founder Julian Dunkerton's return

Superdry on Monday stepped up its acrimonious row with the co-founder of the fashion brand, Julian Dunkerton, saying his return to the board would be “extremely damaging”.

In a strongly worded letter to investors, the company asked them to vote against the appointment of Dunkerton, who stepped down as a director last March, as a non-executive director at a meeting on April 2.

Today’s rebuke comes after Dunkerton, Superdry’s largest shareholder, demanded an extraordinary meeting with investors last month to enable his return to the table after criticising the management’s strategy.

Superdry on Monday said Dunkerton’s return would “lead to a strategy that would fail”, it would “be divisive” and it would “damage morale across the business”.

It also said it would lead to “dysfunctional relationships with the board and management” and “cause departures of key personnel”.

The retailer has seen a downturn in trading and a sharp drop in its share price over the past year, and has issued two profit warnings. Last week, the Standard revealed the chain was cutting up to 200 jobs as it plans to make cost savings of at least £50 million by 2022.

Dunkerton was chief executive until 2014, when he handed over to Euan Sutherland while continuing as creative director. They have been arguing ever since about who is responsible for the fall in sales.

Superdry added: “Institutional shareholders have voiced strong support for current strategy and management; none of them has indicated to the board any support for Dunkerton’s return to the company.”

Dunkerton also wants Peter Williams, who chairs fast-fashion chain Boohoo, to be appointed to the board as a non-executive director. Superdry argued, however, that William’s loyalties lie with the founders and “[he] is not independent” and “does not represent the interest of all shareholders equally”.

Dunkerton said back in January: "Shareholders have been lied to by management. For many months before I left in March 2018 I was being systematically cut out of the design process for a brand that James Holder and I created.”