Superdry PLC (LON:SDRY) co-founder Julian Dunkerton will remain as chief executive until April 2021, as the clothing brand continues looking for a long-term successor.
Having started the company in 2003 with James Holder, Dunkerton was chief executive until 2014 when he was encouraged to relinquish the position to Euan Sutherland.
READ: Superdry interim CFO Nick Gresham takes up role permanently
Dunkerton’s departure, which saw him walk away from the board in 2018, was blamed on a “fundamental disagreement” about design and expansion strategy.
But following a 65% share price plunge over 12 months and the demotion from the FTSE 250, Dunkerton forced his way back earlier this year, even though senior board members warned his return would be “extremely damaging”.
His re-election, won with 51% of the vote, split the board and led to a mass resignation, including Sutherland.
Dunkerton stepped in as interim chief executive to allow the board to find a permanent successor and now he will have the “interim” removed from his job title, though a permanent successor is still sought.
The company reported an £85.4mln loss for the 12 months to the end of April, compared with a profit of £65.3mln a year earlier, due to a £129.5mln writedown on the value of its stores.
Broker Peel Hunt said in a note they have “mixed view” on the matter, as there are no doubts over Dunkerton’s creative drive, although he has admitted a professional CEO would be better equipped to lead a company of this size.
“There is the question of how easy it will be to attract a CEO of the right calibre to work alongside Julian at a critical time for the business, when Julian is going to be driving much of the strategy personally, a point which may well have played a part in the decision to extend Julian’s tenure as CEO through this period,” the broker said.