Superdry’s restructuring plan has gained legal approval, marking a crucial milestone for the company.
- The restructuring plan includes reducing rent for 38 out of 94 UK stores, with 14 stores shifting to a nil rent arrangement.
- Creditors overwhelmingly supported the plan, with 99% voting in favor during a recent decision.
- Shareholders backed a £10 million equity raise, fully underwritten by CEO Julian Dunkerton, and approved delisting from the London Stock Exchange.
- The court’s sanction means the restructuring plan can now be implemented, with changes set to commence in mid-July.
Superdry has successfully secured court approval for its restructuring plan, a significant development following the requisite support from creditors and shareholders. The strategic plan, originally introduced in April, focuses on rental reductions for a portion of its UK outlets, specifically opting for rent cuts on 38 of the 94 stores, which ensures financial agility. Notably, 14 of these stores are adopting a nil rent status, a bold move aimed at reducing operational costs.
The restructuring proposition received a decisive endorsement from Superdry’s creditors, with an overwhelming 99% voting in favor last Tuesday. This consensus underscores the confidence in the management’s strategy to stabilize and promote financial recuperation for the fashion retailer.
Further bolstering the restructuring efforts, the company’s shareholders approved a £10 million equity raise. This capital infusion is notably underwritten by founder and CEO Julian Dunkerton, which is accompanied by a significant strategic shift—Superdry will delist from the London Stock Exchange.
With the court’s sanctioning of the restructuring framework, Superdry is prepared to initiate its implementation. The last trade date for Superdry shares on the Stock Exchange is scheduled for 12 July, leading into the completion of the equity placement by 15 July.
Chairman Peter Sjölander acknowledged this development as a pivotal moment for the company, extending gratitude to all stakeholders involved. He emphasized that these measures are designed to equip Superdry with a robust structure capable of driving a successful turnaround and facilitating future growth.
Superdry is positioned to embark on a transformative phase following the court-approved restructuring plan, aiming for renewed growth and stability.
