20th Mar 2019 11:21
LONDON (Alliance News) - Superdry PLC's co-founders on Wednesday said they were disappointed by a recommendation from advisory firm Institutional Shareholder Services against their proposed board shake-up.
Julian Dunkerton and James Holder, co-founders of the fashion retailer with a combined 29% stake, called for a general meeting of the company on April 2 to propose changes to the company's board.
They are seeking the re-appointment of Dunkerton to the board and the appointment of Peter Williams. Williams is currently non-executive chair of online fashion brand boohoo.com PLC.
However, on Tuesday the ISS recommended investors block Dunkerton's reinstatement to the board, as he was partly to blame for the issues facing the struggling brand.
Responding to the ISS, the pair said in a statement: "Naturally we are disappointed by the ISS recommendation. However, we acknowledge it is extremely rare for ISS to support shareholders who propose changes in corporate strategies."
They added: "The strategic and leadership failings at Superdry remain clear and the financial and operational impacts are obvious and profound: we know how to fix these issues. We continue to engage productively with shareholders, and we are hugely encouraged by the positive response to our proposals."
Last week, Superdry reiterated its conviction a return of co-founder Dunkerton to the board would be "extremely damaging" to company's prospects.
Therefore, the board said it continues to unanimously recommend that shareholders vote against the two appointments.
Superdry shares were trading down 0.6% at 546.50 pence each Wednesday morning.
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