Superdry has revealed its restructuring proposals alongside plans for an equity raise and delisting from the stock exchange. The proposed restructuring primarily focuses on revamping its UK property estate and retail cost base to achieve a more financially sustainable operating model. CEO Julian Dunkerton emphasized the importance of these measures, saying, “Each element of this package will be inter-conditional upon the others.”
Delisting from London Stock Exchange, and more
The equity raise, fully backed by Dunkerton, aims to provide essential liquidity headroom for the company. Additionally, delisting from the London Stock Exchange is expected to yield significant cost savings and facilitate the implementation of the turnaround plan away from public market scrutiny. One key aspect involves renegotiating leasehold obligations to reduce losses and property-related liabilities. The company also plans to amend debt facility agreements with principal lenders, including Bantry Bay and Hilco, to extend repayment dates and secure major cash savings.
Success hinges on equity raise
The success of these initiatives hinges on the proceeds from the equity raise, which could amount to £10 million (€11.7m), ensuring sufficient cash reserves to execute the turnaround plan effectively. While the restructuring is anticipated to conclude by late June, Superdry’s day-to-day operations outside the UK, including supplier relationships and employee affairs, are not expected to be impacted. Chairman Peter Sjӧlander emphasized the board’s commitment to securing the company’s long-term future while safeguarding stakeholder interests. Dunkerton echoed his sentiment, affirming his dedication to Superdry’s stakeholders and expressing optimism about the brand’s future despite recent challenges.
