Founder Julian Dunkerton is considering a bid for Superdry

Superdry shares more than doubled after its founder said he was in talks to buy the fashion brand.

Julian Dunkerton showed his hand amid speculation that hedge funds could be planning to attack the company he founded more than two decades ago.

Shares started to rise yesterday morning after Norwegian investment group First Seagull bought a 5.3 percent stake.

This led to rumors that the company was planning a bid for a company that had failed due to a series of profit warnings and a dramatic drop in its share price.

Superdry subsequently revealed that Dunkerton itself has begun ‘exploring the possibility of making an offer for the company’.

Shares closed up 118.2 percent, or 25p, to 46.15p.

Dukerton, 58, is in talks with companies that could potentially finance a deal. He owns 20 per cent of the business, having helped set it up as a market stall in Cheltenham in 2003.

But Superdry said discussions were at an early stage and no decisions had yet been made.

Dunkerton, who is married to fashion designer Jade Holland Cooper, has until March 1 to make an offer or abandon the proceedings.

Companies that could potentially fund a bid include Ted Baker owner Authentic Brands and High Street Stoute Next, which has bought struggling retailers such as Joules and FatFace in recent years.

There is also speculation that Sycamore Partners, the private equity firm that formerly owned luxury brand Kurt Geiger, could throw its hat in the ring.

Despite yesterday’s share price rally, the stock is still down 98 percent since its 2018 peak and more than 60 percent in the last twelve months. At its peak the company was valued at £1.6 billion.

But Superdry has struggled in recent years and is worth just £45 million.

After leaving the company in 2018, Dunkerton returned as boss a year later in a boardroom showdown, unhappy with Superdry’s performance.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said new owners could “breathe some life into the retailer”.