Superdry aims to delist from LSE
SUPERDRY has said it wants to delist from the London Stock Exchange, as the fashion chain launched a restructuring plan in its latest efforts to salvage 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.
It announced a string of cost-cutting measures, including reducing the rents on 39 of its UK sites and extending the maturity date of large loans. It also aims to return to sales growth through measures such as improving its product ranges and reallocating marketing spend, while it is also expecting conditions for households to improve.
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 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 Superdry’s co-founder and chief executive Julian Dunkerton, who assured his “passion for this great British brand remains as strong today as it was when I founded the business”.
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.
Superdry shares tumbled by more than 30 per cent in early trading on Tuesday.
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 much as possible in the proposals we are announcing today.”
Commenting on the proposals, Peter Sjӧlander, Superdry chairman, said: “The board has spent a lot of time engaging with Julian Dunkerton to come up with a plan which gives the business the best possible prospects for the long term while protecting the interests of shareholders and other stakeholders to the greatest extent possible.
“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 back on to a stable financial footing for the future. We believe that the proposed restructuring plan, combined with the equity raise fully supported and underwritten by Julian Dunkerton, is the best way to achieve this, together with a delisting which would further reduce costs and enable the business to progress the turnaround.
“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.”