Superdry has said its founder will not lead a takeover for the troubled fashion brand as it increased and extended a loan.
Last month, the retail chain revealed talks between co-founder and chief executive Julian Dunkerton and US investor suitors over a possible takeover deal.
But on Thursday, Mr Dunkerton – who is also Superdry’s largest shareholder – said he had dropped plans for a potential deal.
The boss and the group’s transaction committee said they “concluded that a takeover offer from Julian Dunkerton for the company is unlikely to deliver an outcome for shareholders” amid the work taking place to turnaround the business.
It stressed that he was still talking with the business about other methods of financially supporting the group, including potentially underwriting an equity raise.
Superdry said such a move, which would be “at a very material discount” to its current share price, would provide more financial headroom for its turnaround plan.
In January, the retail business said it was looking at various “cost-saving options” after reports it was considering a major restructuring which could include store closures and job cuts.
The business, which employs around 3,350 globally, runs 216 shops alongside franchised stores.
On Thursday, Superdry also confirmed that it had agreed an extension and increase to a lending facility from Hilco Capital.
The loan from Hilco would be extended by six months to take it until February 2025 and would allow Superdry to immediately access another £10 million.
A further £10 million would also be available between September and November subject to approval and the implantation of cost-cutting measures.