Superdry today warned that if it does not proceed with these plans, which also includes cutting rents at 39 stores, it could be driven into administration
Superdry has announced plans to delist from the London Stock Exchange, as part of a wider restructuring aimed at saving its future on the UK high street.
The firm warned that if it does not proceed with these plans, it could be driven into administration. As part of cost-saving measures, the company plans to lower the rents on 39 of its UK locations and extend the maturity date on significant loans.
The brand also aims to stimulate sales growth by enhancing its product ranges and reallocating marketing spend. It anticipates an improvement in household conditions. With 216 owned and franchised stores, Superdry is exploring various cost-cutting measures after a year marked by falling sales and increasing losses.
The company intends to generate up to £10million through an equity raise selling new shares to back its restructuring ventures. Superdry’s co-founder and chief executive Julian Dunkerton pledged said he was committed to saving the business, stating his “passion for this great British brand remains as strong today as it was when I founded the business”.
According to Superdry, the decision to withdraw its shares from the London markets is because it needs to move “away from the heightened exposure of public markets”. Delisting is also expected to expedite cost savings. The company’s shares plunging over 30% in early trading on Tuesday as it awaits shareholder approval at its general meeting to proceed with cancelling its listing.
Mr Dunkerton remarked: “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.”
Superdry’s chairman Peter Sjolander commented: “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. 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.”
