Superdry PLC (LSE:SDRY) shares have plummeted more than 51% to an all-time low after it was revealed its founder would not be making an offer to rescue the business.
Julian Dunkerton, the fashion group's co-founder and chief executive, had been speaking with US investors over recent months regarding a deal to take the company private.
The shares, having sunk to previous lows of around 15p in late January, recieved a boost after the plans were announced in early February.
But following the breakdown in talks, which was announced after stock markets closed last week, the stock has slipped to 14p, the lowest price since it was listed in 2010.
Superdry said any takeover deal was "unlikely to deliver an outcome for shareholders" but would help to reignite the business and save cash.
Other plans are still being considered by Dunkerton, including the potential to underwrite an equity raise.
Superdry employs close to 3,350 workers in all its international operations and has around 215 stores along with several franchised stores.
Reports in February suggested that the value of Superdry owned by a brand management company would be about £400 million to £600 million, compared with its present market cap of about £36 million.
At their peak in early 2018, the company’s shares were trading just shy of £20, giving it a valuation above £1.7 billion.
The company has struggled in recent times and reports said the firm’s cost-cutting plans could include store closures.