Superdry to leave stock exchange for restructuring

FASHION chain Superdry has announced a major restructure in a bid to prevent the company entering administration.

The Cheltenham-based firm will delist from the stock exchange as part of the proposals so it can carry out its plans away “from the heightened exposure of public markets”.

Superdry told shareholders on Tuesday (April 16) that it’s also planning rent reductions on 39 sites and an equity raise as part of plans to keep the business afloat.

The retailer is looking to raise £10m through the sale of new shares which will be fully insured by founder and chief executive Julian Dunkerton.

According to Superdry, it will make “material cash savings” over the threeyear period of the restructuring plan.

Mr Dunkerton said the proposals mean “putting the business on the right footing to secure its long-term future following a period of unprecedented challenges”.

He said: “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.

“My passion for this great British brand remains as strong today as it was when I founded the business.”

In March, Superdry came to an agreement with lender Hilco to extend its debt facility up to £20m.

The agreement is conditional on Hilco being satisfied that sufficient progress is being made in relation to the implementation of cost-saving measures, including the restructuring plan, the company said.

Peter Sjölander, Superdry’s chair, said the business had faced “extraordinary external challenges”. He added: “While we recognise the compromises we are asking from some of our stakeholder groups, we would urge them to support the proposals which we believe are the best way of ensuring Superdry’s recovery over the long-term.”

In January, Superdry reported a nearly one-quarter drop in revenue and a widening of its adjusted loss. Revenue at the company fell 23.5 per cent to £219.8m in the six months to the end of October after the UK was faced with an unusually warm autumn period, which made people less keen to buy clothes from the retailer’s collection.

My passion for this great British brand remains as strong today as it was when I founded the business. Julian Dunkerton