Superdry is poised to de-list from the London Stock Exchange as part of a restructuring plans that it says are critical to its long-term survival as a brand.
The fashion retailer has put forward plans to ensure its survival, which will entail steep rent cuts across 39 of its stores and delisting from the London Stock Exchange.
While the fashion retailer is not proposing closing any stores, dissatisfied landlords will have the option to terminate Superdry’s leases if they don’t agree with the terms being proposed.
The retailer said that without the restructuring plan, it would need to enter administration – leaving creditors materially worse off than under the plan.
The amount of a store’s suggested rent cut will be determined by each unit’s individual performance.
Superdry also announced its intention to delist from the London Stock Exchange, a move which it says will deliver significant savings and allow it to make changes away from the “heightened exposure of public markets”.
Delisting will be subject to shareholder approval.
The announcement follows months of speculation over the brand’s long-term health. Last month, discussions over whether co-founder and CEO Julian Dunkerton would take the business private floundered.
Dunkerton said: “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.
“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.”
Superdry recently agreed an increased borrowing capacity with Hilco Capital, although it also owes tens of millions to Bantry Bay.
Superdry chairman Peter Sjӧlander 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 on 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, 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.”
To keep its finances on a somewhat even keel, Superdry has been busily offloading the rights to its overseas brands in India, the Asia-Pacific and the US.
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