Fashion retailer Superdry has formally unveiled an equity raise to bolster its balance sheet as it pursues a turnaround programme.
Superdry intends to generate gross proceeds of around £12m by issuing new shares through a placing and retail offer.
Founder and chief executive Julian Dunkerton has agreed to underwrite the equity raise in its entirety but the retailer hopes existing shareholders and institutions will buy in.
The new shares will amount to 19.1% of Superdry’s existing issued ordinary share capital.
The retailer 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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