Superdry proposes rescue package and leaving LSE

Business@inews.co.uk

Superdry has proposed a rescue package involving a fundraising backed by its co-founder Julian Dunkerton, leaving the London Stock Exchange (LSE) and a restructuring plan, in order to secure its future on the UK’s high streets.

The company warned it would be forced to enter into administration if it did not go ahead with the plans.

A spokesperson from Superdry also told i that the restructuring would not affect the retailer’s returns and exchange policy.

“It is very much business as usual for Superdry. Gift cards will continue to be accepted and returns will be honoured. Customers can shop with us with confidence,” a spokesperson said.

The fashion business, which runs 216 shops as well as franchised stores, has been looking at various ways to cut costs after a year of weakening sales and deepening losses.

It announced cost-cutting measures, including reducing the rents on 39 of its UK sites and extending the maturity date of large loans.

It is looking to raise up to £10m through an equity raise, meaning the sale of new shares, to support its restructuring plans. This will be backed and insured by Mr Dunkerton, who said his “passion for this great British brand remains as strong today” as it was when he founded the business in 2003.

Trading in Superdry’s shares was briefly halted after a sharp fall early yesterday.

Superdry said it wants to delist its shares from the London markets as a result of the plans, which need to be implemented “away from the heightened exposure of public markets”.

Delisting will also help it make cost savings, it said.

The business needs shareholders to approve the move at its general meeting before it can apply to cancel its listing. Shares tumbled by more than 30 per cent in early trading yesterday.

Mr Dunkerton added: “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

Delisting Superdry will help the fashion chain make cost savings

much as possible in the proposals we are announcing today.”

Superdry’s chairman, Peter Sjölander, said: “The business has faced extraordinary external challenges and, while good progress has been made on our cost-saving initiatives, more needs to be done to get the business on a stable financial footing for the future.”