Superdry, the British fashion retailer, is facing a pivotal moment as it braces for the potential rejection of a restructuring plan proposed by CEO Julian Dunkerton. If creditors do not approve the plan, Superdry is set to launch a four-week emergency sale process, which could lead to a pre-pack administration deal, as reported by Sky News.
The proposed restructuring involves Dunkerton injecting either £8 million through an open offer available to other shareholders, or £10 million in a private placing exclusive to him. This financial maneuver is designed to precede the company’s potential delisting from the London Stock Exchange. Amidst financial troubles, Superdry has also considered pulling out of several international markets, including the United States, to stabilize its operations. This strategic retraction is part of a broader effort to streamline the business and focus on more profitable areas.
The urgency of the situation was underscored by Dunkerton’s comments to Retail Gazette: “The business is in a serious situation. It is vital that these proposals are approved, and the restructuring plan goes ahead, which allows us to save jobs and would be the best outcome for all stakeholders.”
The challenge to the rescue plan by M&G, landlord of Superdry’s Oxford Street flagship, which involves significant rent reductions across numerous locations, adds another layer of complexity to the retailer’s efforts to recover from its financial woes.
