US asset manager Davidson Kempner, owner of Britain’s Oak Furnitureland, is in discussions with British fashion retailer Superdry co-founder Julian Dunkerton about backing an offer for the clothing company, Sky News reported on Monday, without citing a source.

The talks are at a preliminary stage and there is no guarantee that Davidson Kempner will ultimately sign an agreement with Dunkerton, the report added.

Superdry and Davidson Kempner declined to comment.

Dunkerton, who is the company’s CEO and top shareholder, was also in talks with RCapital and Gordon Brothers over a bid to take the troubled retailer private, Sky News reported earlier this month.

Superdry has battled weak demand for its jackets and clothing, as well as a cash crunch. It said in January that it does not expect market conditions to improve in the near term after group sales fell 13.7 percent in a tough Christmas quarter.

Superdry’s stock dropped 73 percent in 2023.

By Disha Mishra and Juveria Tabassum; Editing by Leslie Adler, Cynthia Osterman and Aurora Ellis

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Superdry Founder Dunkerton Explores Taking Retailer Private

Superdry has consented to Dunkerton’s request to begin exploring an offer and he is in talks with potential finance providers.