Superdry is to embark on a restructuring plan including rent reductions in stores and a fundraising, backed by its boss and co-founder Julian Dunkerton, and will delist from the London Stock Exchange.
The struggling British fashion retailer announced the plans a fortnight after Dunkerton decided against making a takeover offer with partners after a two-month pursuit. Superdry hopes the measures will return the business to a “more stable footing”.
The three-year restructuring plan, a formal procedure under the Companies Act for companies in financial difficulties, is expected to result in rent reductions on 39 UK sites, the extension of the maturity date of loans, and “material” cash savings from rent and business rate changes.
Dunkerton, who began selling clothing on a market stall in Cheltenham and co-founded Superdry in 2003, has a 26.4% stake in the company and is supporting the fundraising, which is expected to raise up to £10m.
Superdry said by delisting it would “benefit from significant cost savings associated with being listed and implement its turnaround plan away from the heightened exposure of public markets”. Its shares, which have fallen in recent months to a record low of 8p, are expected to cease trading in July.
In January, the company said it was considering store closures and job cuts after sales dropped by almost a quarter in the six months to October 2023.
Dunkerton said: “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.
“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.”
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Peter Sjӧlander, the chair, said: “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.”
