Superdry founders fight back as ISS backs status quo

Superdry founder Julian Dunkerton said he was disappointed but not surprised after an influential shareholder advisory group recommended blocking his attempts to return to the clothing company's board.

Last week Superdry's current board urged shareholders to vote against the appointment of Dunkerton and associate Peter Williams as directors at a general meeting that is scheduled for 2 April.

Institutional Shareholder Services, which provides almost 2,000 institutional investors with impartial advice on corporate governance, responsible investment and other matters, has now also added its opinion.

“Given that the current issues at the company seem to have at least partially arisen as a result of combined decision-making by Julian Dunkerton and management, shareholders’ support for these proposals is not considered warranted at this time,” the proxy voting agency said in a note to its clients.

It was also reported by The Times that Pirc, another shareholder advisory body, has also recommended that shareholders vote against Dunkerton’s return to the fashion group he co-founded with James Holder in 2003.

On Wednesday, Dunkerton and co-founder James Holder, who own around 29% of the FTSE 250 company's shares, put out a statement saying that while they were disappointed by the ISS recommendation, "we acknowledge that it is extremely rare for ISS to support shareholders who propose changes in corporate strategies".

"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."