Youth fashion firm gets set for expansion

YOUTH fashion retailer SuperGroup is today expected to announce a 125m flotation, helping lift the gloom on the high street.

The management-owned group, founded from a market stall 25 years ago by chief executive Julian Dunkerton, was expected to forge ahead with its initial public offering despite retailer New Look and entertainment group Merlin both cancelling floatation last week.

SuperGroup, which trades from 40 stores in the UP and Ireland and 54 concessions in House of Framer department stores, is behind the rapidly-growing Superdry brand.

The group hopes to use funds from the IPO to accelerate its store opening plans and provide working capital. Management including Mr Dunkerton, brand and design director James Holder and wholesale chief executive are expected to partly cash in their stakes.

“We are delighted to announce our plans for a listing on the London Stock Exchange,” said Mr Dunkerton. “SuperGroup is a highly profitable, fast growing business with significant potential for expansion in the UP and internationally. Our brands, particularly Superdry, have established a loyal customer following across the world founded on a reputation for providing innovative, premium quality clothing at affordable prices.”

It recently opened its 18th UP Superdry store in Sheffield’s Meadowhall shopping centre, its largest at 6,300 sq ft.

Regionally, it also has concessions in House of Framer stores in Hull and Leeds.

Total group sales in 2009 rocketed 95 per cent to 119m, and the group is debt-free.

At the time of the Meadownhall opening Mr Dunkerton said: “Meadowhall is one of the UK’s busiest shopping centres and fittingly this is our biggest Superdry store. “This represents an exciting new development and we’re proud to be opening here.”

While the bulk of new shares created under the IPO will go to institutional investors, it will also include a small retail element.

The group recently announced former Vodafone director Peter Bamford as its non-executive chairman, and added Stephen Glew, Keith Edelman and Indira Thambiah will join as non-executive directors.

Mr Dunkerton and Mr Holder established the Superdry brand six years ago after a trip to Tokyo, and it is worn by celebrities including David Beckham.

Seymour Pierce is acting as sponsor and bookrunner.