As reported by RetailWeek, Superdry has officially announced a capital increase to strengthen its balance sheet as part of a turnaround program. The brand intends to raise gross proceeds of approximately £12 million (€13.6m) by issuing new shares in a placing and retail offering. Founder and chief executive Julian Dunkerton has agreed to underwrite the entire equity raising, but the retailer hopes existing shareholders and institutions will participate. The new shares will represent 19.1 percent of Superdry’s existing ordinary shares. In addition to the equity raise, the initiative also includes the sale of some intellectual property rights in the Asia-Pacific region to raise £34 million (€38.5m), an annual cost reduction of £35 million (€39.7m) and asset-backed borrowing from specialist lender Bantry Bay. If Dunkerton’s shareholding is 30 percent or more following the fundraising, Superdry will seek a waiver under takeover rules that would otherwise force him to make an offer for the business.

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