Superdry to quit stock market in far-reaching restructuring

(Sharecast News) - Superdry is to delist from the London Stock Exchange as part of a far-reaching restructuring plan, the struggling retailer confirmed on Tuesday. The fashion brand is seeking rent reductions on 39 sites, the extension of the maturity date on certain loans and "material" cash savings from rent and business rate compromises. It currently has around 100 UK stores.

It also will look to raise around £10m through an equity raise underwritten by founder and chief executive Julian Dunkerton, to provide "necessary liquidity headroom".

Superdry said it wanted to implement the plans "away from the heightened exposure of public markets", however. It will therefore seek shareholder approval to delist at June's general meeting before potentially delisting in July.

Superdry warned: "The company believes that, unless the restructuring plan comes into effect, it will need to enter administration and other companies in the group will need to enter into administration or an equivalent insolvency process.

"This outcome would leave creditors, including the creditors whose claims would otherwise be compromised by the restructuring plan, materially worse off than they would be under the restructuring plan."

The proposals, which require shareholder approval, sent the shares tumbling to fresh lows, and by 0930 BST the stock was down 25% at 6.01p.

Superdry has lost 80% of its value so far this year, after the fashion retailer warned in January it would cut jobs and close stores following a slump in sales.

Dunkerton - who found the business in 2003 and retains a 26% stake - opened talks with potential partners about taking the business private shortly afterwards, but eventually opted against making a bid.

Speaking on Tuesday, Dunkerton called it a "critical moment" in the company's history.

He continued: "At its heart, these proposals are putting the business on the right footing to secure its long-term future following a period of unprecedented challenges.

"I am aware of the implications for all our stakeholders and I have sought to protect their interests as much as possible."

Chair Peter Sjolander added: "While good progress has been made on our cost saving initiatives, more needs to be done to get the business on a stable financial footing for the future.

"We believe that the proposed restructuring plans and equity raise is the best way to achieve this, together with a delisting, which would further reduce costs and enable the business to progress the turnaround."