Superdry’s restructuring plan has achieved a significant milestone with court approval, paving the way for crucial changes within the company.
- The restructuring strategy was first introduced in April, focusing on comprehensive rent adjustments across numerous UK retail locations.
- Garnering overwhelming support, the proposal received a 99% approval rate from creditors on 11 June, demonstrating strong backing.
- Shareholders followed suit by endorsing a £10 million equity raise, crucial for the restructuring to proceed, announced on 14 June.
- Superdry plans to delist from the London Stock Exchange with the final trading day set for 12 July, facilitating the execution of its new strategy.
Superdry’s comprehensive restructuring plan, initially unveiled in April, aims to transform the company’s cost structure with sweeping rent reductions. The proposal includes decreased rental agreements for 38 out of the company’s 94 UK stores, with 14 locations transitioning to a nil rent model. The intent behind these adjustments is to streamline operations and stabilise the cost base for future profitability.
The restructuring gained substantial support from stakeholders, evident from the 99% approval rate among creditors by 11 June. This overwhelming agreement reflects a shared vision for Superdry’s potential turnaround and growth under the proposed new structure.
Following this, on 14 June, the company’s shareholders backed a critical £10 million equity raise. This financial reinforcement, fully underwritten by Superdry’s founder and CEO, Julian Dunkerton, is a decisive step towards implementing the restructuring measures.
Additionally, the company plans to exit the London Stock Exchange, with its shares trading ceasing on 12 July. This move is part of a broader strategy to realign the business operations away from public market pressures and focus on long-term growth objectives.
Peter Sjölander, Superdry’s chairman, expressed gratitude to the shareholders and creditors, acknowledging their pivotal role in supporting the restructuring efforts. He emphasised the importance of the proposed changes in delivering a turnaround and enhancing future growth prospects.
With the court’s approval secured, Superdry is now poised to implement its restructuring measures, setting the stage for a strategic transformation.
