Superdry has pinned its revival hopes on gaining rent reductions across 39 UK stores, an equity raise underwritten by founder Julian Dunkerton, and delisting from the stock market.
The fashion retailer confirmed its restructuring plan this morning, which is intended to help Superdry “deliver its new, more financially sustainable, target operating model”.
The restructuring is a formal procedure under the Companies Act for companies in financial difficulties. The retailer said unless the plan comes into effect, it will need to enter administration.
The plan will result in “material cash savings from rent and business rate compromises” over the three years of its restructuring plan, it said.
Superdry said the three elements – the restructuring plan, equity raise and delisting – will allow it to “return to a more stable footing, accelerate its turnaround plan and drive it towards a viable and sustainable future”.
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The plan, first revealed by Sky News, does not include the closure of any stores but the publication said that landlords would have the option of terminating its lease with the retailer if they were dissatisfied with the terms of the deal.
The fashion retailer’s founder Dunkerton, who holds a 26.4% stake in the company, is supporting the fundraising, which is expected to raise up to £10m.
The firm is also set to delist from the London Stock Exchange as it would “benefit from significant cost savings associated with being listed and implement its turnaround plan away from the heightened exposure of public markets”.
It is the latest move from the business after a possible take-private deal from Dunkerton fell through last month.
The founder said: “Today’s announcement marks a critical moment in Superdry’s history. At its heart, these proposals are putting the business on the right footing to secure its long-term future following a period of unprecedented challenges.
“I am aware of the implications for all our stakeholders and I have sought to protect their interests as much as possible in the proposals we are announcing today.
“My decision to underwrite this equity raise demonstrates my continued commitment to Superdry, its stakeholders, its suppliers and the people who work for it.”
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