Superdry restructuring plan includes Stock Market delist and major property restructure
Fashion retailer Superdry has announced its highly anticipated restructuring plan.
This will 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 Cheltenham-headquartered company has 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 is expected to result in rent reductions on 39 of the company's sites, extension of loan maturity dates with Bantry Bay and Hilco.
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.
It's hoped-for new operating model also incorporates other measures including returning the underlying retail channel to positive like-for-like revenue growth through internal initiatives such as improved product ranges and a reallocation of marketing spend – and also an improvement in the external environment.
Peter Sjӧlander, Superdry Chairman, 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.”
Julian Dunkerton, Superdry CEO and Co-Founder, added “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.”
