Superdry shareholders have voted in favour of the fashion retailer’s rescue proposals, which it said means it will now avoid insolvency.
Shareholders have green lit the retailer’s plans for a £10m equity raise, which will be underwritten by founder Julian Dunkerton, and a delisting from the London Stock Exchange.
It said investors had opted to implement the placing, which “provides greater comfort that the company will have sufficient liquidity headroom to implement its turnaround plan, particularly taking into account the ongoing challenging economic environment, compared to the £6.9m gross proceeds from the open offer”.
Superdry Chairman Peter Sjӧlander said: “I am pleased that our shareholders have supported the proposed equity raise and would like to thank those shareholders who voted in favour of the proposals before them today.
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“This is a crucial step towards delivering the restructuring of the business and ensuring that Superdry is in the best possible shape to complete its recovery and return to growth.”
It comes as Superdry won the backing from creditors for its restructuring plan on Tuesday, which looks to impose rent reductions across 36 UK stores, 12 of which will switch to nil rent.
Dunkerton said: “I am extremely grateful for the support shown today from our shareholders, and earlier this week from our creditors. This is a crucial next step in our journey, and reflects a turning point for the business, which – pending court approval for our restructuring plan next week – means Superdry will avoid insolvency.
“I recognise all stakeholders have made deep compromises to enable this turn around, and I will be putting a significant amount of my own money behind this too, to ensure that the business continues to survive over the long term. With the court hearing next week, I continue to look forward to a positive future for Superdry.”
The plan, which does not include any store closures, is the latest throw of the dice by Dunkerton after a possible take-private deal fell through earlier this year.
It will result in “material cash savings from rent and business rate compromises” over the three years of its restructuring plan.
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