Superdry shareholders have backed a significant restructuring plan.
- A £10m equity raise, underwritten by CEO Julian Dunkerton, was approved.
- The plan includes a delisting from the London Stock Exchange.
- Creditors had earlier approved rent reductions for several stores.
- The High Court will review the plan in an upcoming hearing.
In a decisive move, Superdry shareholders have given their approval to a critical restructuring plan aimed at stabilising the company’s financial future. The plan, which includes a £10m equity raising effort underwritten by the current CEO and founder Julian Dunkerton, was seen as a necessary step to widen the company’s liquidity options. This decision comes in stark contrast to a previous proposal that involved a £6.9m open offer, which would have required broader shareholder participation.
This restructuring strategy is aligned with a broader set of financial and operational adjustments that were earlier agreed upon by Superdry’s creditors. In particular, the plan entails significant modifications to the rental agreements of 38 out of 94 UK stores, with 14 properties switching to a nil rent basis. This adjustment is designed to alleviate financial pressures, enabling the company to redirect resources more effectively towards growth initiatives.
The decision to delist from the London Stock Exchange forms a core component of this restructuring plan, reflecting a strategic pivot in how the company intends to manage its public investment profile. By removing itself from the exchange, Superdry aims to streamline its financial operations and focus on internal recovery and reinvigoration strategies rather than external market pressures.
Julian Dunkerton, expressing gratitude, emphasised the support from both shareholders and creditors as pivotal. He remarked that the upcoming court hearing is the next significant hurdle in finalising the restructuring strategy. “I am extremely grateful for the support shown today from our shareholders, and earlier this week from our creditors,” Dunkerton noted, underlining the cooperation that has been instrumental in reaching this point.
The restructuring plan is scheduled for High Court review on the 17th and 18th of June, which marks the final stage of approval required for its full implementation. Superdry’s chairman, Peter Sjölander, echoed Dunkerton’s sentiments, stating the shareholder vote is a crucial step towards delivering on the company’s recovery objectives and positioning it for future growth.
The successful shareholder approval of Superdry’s restructuring plan marks a pivotal moment in the retailer’s ongoing recovery efforts.
