The war of words at Superdry should focus investors’ minds

All eyes are on Theresa May as she mulls the prospect of a third vote on her withdrawal deal, but for City watchers there's another ballot next week that promises fireworks of its own.

Julian Dunkerton, founder and former CEO of Superdry is determined to win back a seat on the board. Despite leaving the retailer last year he remains a significant shareholder and, together with his co-founder James Holder, he's called a shareholder meeting for 2 April.

When Dunkerton left the company this time last year (having moved into the position of product brand director) nearly £100m was wiped off its value as investors took fright at the prospect of a future without the founder. Since then, the firm's fortunes have floundered – and Dunkerton has been the most vocal critic, as you might expect given how much value has been wiped from his stake.

The war of words between Dunkerton and current chief executive Euan Sutherland has intensified as the shareholder vote draws nearer. Superdry says that the founder's return would undermine morale, lead to dysfunctional relationships and trigger an exodus of staff. Dunkerton has hit back, including in the pages of today's City A.M., accusing current management of being out of its depth while Sutherland is apparently “too embarrassed to admit he is wrong.”

Dunkerton believes that the company is messing up its online strategy and getting in a muddle over the lines it offers. He's particularly critical of the move into children's clothing. Some of his concerns are certainly valid, but analysts aren't convinced that he has all the answers. Some feel the company's difficulties are down to holding too much stock in too much space, and that Dunkerton would only add to this problem.

But although the row is being presented as a clash of corporate strategy, it's become much more personal. Sources close to the retailer take the view that if Dunkerton is successful in his bid to return then there would have to be mass boardroom resignations given how vocal they've been against the idea.

Dunkerton says he has significant shareholder support for his bid, but the idea of boardroom chaos following his return in hostile circumstances could lead them to conclude that the prize just ain't worth the fight.