Superdry is preparing to run an emergency four-week sale process if creditors reject chief executive Julian Dunkerton’s restructuring plan.
The struggling retailer will commence an accelerated M&A process if the plan is not approved by creditors in the coming weeks, Sky News reported.
As part of Superdry’s proposal, Dunkerton would inject £8m in an open offer available to other shareholders or £10m in a placing that would only be accessible to him.
The share sale would take place before the retailer delists from the London Stock Exchange.
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In a document circulated to creditors, a rejection of the proposed restructuring would be followed by a four-week sale process of Superdry that would likely result in a pre-pack administration deal.
It comes as the publication reported last month that M&G, the landlord of Superdry’s Oxford Street flagship, was considering challenging the rescue plan, which looks to impose sizeable rent cuts across 39 of its stores, with 15 at nil rent.
The retailer said on Tuesday it expects to close certain stores in the UK as a result of the plan and that it had itentified 25 to 30 European-based stores for closure over the next 12 months.
It also announced it will switch to a new third party e-commerce platform to replace its existing system, which it said will “enable a revitalised and more efficient e-commerce strategy in the UK and internationally”.
Dunkerton previously told Retail Gazette: “The business is in a serious situation. It is vital that these proposals are approved, and the restructuring plan goes ahead, which allows us to save jobs and would be the best outcome for all stakeholders.”
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