Superdry has successfully completed an equity raise of £12m as the retailer pursues a turnaround programme.
The equity raise represents 19.1% of the company’s existing issued share capital and will raise gross proceeds of approximately £12m.
The fashion retailer said the offer price for new ordinary shares was at a 9.9% discount to the closing share price of 84.7 pence on May 2.
The news comes after founder and chief executive Julian Dunkerton agreed to underwrite the equity raise in its entirety to strengthen the company’s balance sheet and pursue a turnaround plan to continue to be operational.
The retailer had earlier said: “Superdry continues to pursue its turnaround plan in the face of a challenging consumer landscape. The brand is recovering well and the company is making strong progress toward being the ‘number-one sustainable style destination’.
“However, this strategic transformation needs to be underpinned by a strong and stable balance sheet and, as a result, as well as actively managing its near-term working capital needs, the company is engaged in various initiatives to deliver that strengthened position.”
Alongside the fundraising, initiatives include the sale of some IP in the Asia-Pacific region to raise £34m, annualised cost reduction of £35m and asset-backed borrowing from specialist lender Bantry Bay.
In the event that after the fundraising Dunkerton’s shareholding equals or exceeds 30%, Superdry will seek a waiver under takeover rules of the obligations that would otherwise force him to make an offer for the business.
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