LONDON, UK: Superdry Plc has unveiled a comprehensive package of measures aimed at revitalizing its operations and ensuring long-term success. The fashion retailer is set to implement a significant restructuring plan, raise equity, and delist from the London Stock Exchange.

Peter Sjӧlander, Superdry Plc Chairman, commented: “The Board has spent a lot of time engaging with Julian Dunkerton to come up with a plan which gives the business the best possible prospects for the long term while protecting the interests of shareholders and other stakeholders to the greatest extent possible.

The business has faced extraordinary external challenges and, 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 Plan, combined with the Equity Raise fully supported and underwritten by Julian, is the best way to achieve this, together with a delisting which would further reduce costs and enable the business to progress the turnaround.

While we recognise the compromises we are asking from some of our stakeholder groups, we would urge them to support the proposals which we believe are the best way of ensuring Superdry’s recovery over the long-term.”

Restructuring for Stability

At the heart of the turnaround strategy is the Restructuring Plan, initiated by C-Retail Limited, a subsidiary that manages Superdry’s leasehold portfolio. This plan will see a reorganization of the UK property estate and retail cost base, targeting rent reductions on 39 sites and amendments to existing debt facility agreements with Bantry Bay and Hilco.

Equity Raise to Fuel Growth

To support the transition to a more sustainable operating model, CEO Julian Dunkerton has committed to underwriting an Equity Raise, providing the liquidity needed to steer the company through its transformation. The Equity Raise will be structured as either an open offer at £0.01 per share to raise up to €8 million or a placing at £0.05 per share to raise £10 million.

Strategic Delisting

Superdry also plans to delist from the London Stock Exchange, a move expected to yield significant cost savings and allow the company to execute its turnaround plan with reduced public market scrutiny. The delisting is contingent on shareholder approval, with a matched bargain facility being considered to facilitate share trading post-delisting.

A Vote of Confidence from Creditors

The Restructuring Plan has received the nod from principal secured lenders, Bantry Bay and Hilco, who have consented to the launch and remain supportive. The plan’s success hinges on the Equity Raise proceeds, ensuring Superdry has the necessary funds to achieve its goals.

Looking Ahead

With these strategic initiatives, Superdry aims to return to positive like-for-like revenue growth, improve gross margins, and establish a more efficient cost base. The target operating model projects revenues between £350m to £400m and an EBITDA margin in the mid to high single digits.

A Critical Juncture

The company has reached a critical juncture, with the Restructuring Plan being a formal procedure under Part 26A of the Companies Act 2006. The plan’s approval and implementation are crucial to prevent the need for administration and to provide a better outcome for creditors.

Superdry’s bold restructuring efforts, backed by a significant Equity Raise and strategic delisting, signal a determined push towards a sustainable and profitable future. The fashion retailer’s comprehensive plan has garnered support from key stakeholders, setting the stage for a transformative journey ahead.

Julian Dunkerton, Superdry CEO and Co-Founder, commented on today’s proposals: “Today’s announcement marks a critical moment in Superdry’s history. 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 in the proposals we are announcing today.

My decision to underwrite this equity raise demonstrates my continued commitment to Superdry, its stakeholders, its suppliers and the people who work for it. My passion for this great British brand remains as strong today as it was when I founded the business.”

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