According to a Sky News report, Cheltenham-based fashion retailer Superdry is preparing to run an emergency four-week sales process if its creditors reject founder Julian Dunkerton's plans to personally inject £10 million into the retailer to stave off insolvency.
According to Sky News, a document circulated to creditors in the last few days, and seen by the broadcaster, any rejection by the plan would result in a four-week sale process, with the probably outcome being a pre-pack administration deal, Sky said.
Last month, we reported that Superdry's restructuring plan would include a major restructuring of its UK property estate and retail cost base, which it says is the key element of its turnaround plan.
The company also announced an equity raise, underwritten in full by co-founder Julian Dunkerton, to achieve its objectives and the expected delist from the London Stock Exchange.
The restructuring plan was expected to result in rent reductions on 39 of the company's sites, extension of loan maturity dates with Bantry Bay and Hilco.
At that time, the company said: "Together, the Restructuring Plan, Equity Raise and Delisting constitute a key package of measures that are needed to allow Superdry to return to a more stable footing, accelerate its turnaround plan and drive it towards a viable and sustainable future. Therefore, each element of this package will be inter-conditional upon the others, such that the package as a whole requires each of the restructuring plan, equity raise and delisting to be approved."
The company's suppliers, employees and landlords of sites outside the UK will not be affected, the Superdry statement said.
If the plan doesn't go ahead, Superdry warned it would need to enter administration leaving creditors, worse off than they would be under its planned restructuring.
Julian Dunkerton, Superdry CEO and Co-Founder, added “My decision to underwrite the 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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