- Plan will also include rent reductions on 39 UK sites
Superdry will delist from the London Stock Exchange as part of a restructuring plan to save the company.
The embattled retailer told investors on Tuesday the plan will also include rent reductions on 39 UK sites.
The Cheltenham-based business added the plan will include the extension of maturity date of loans made under the group’s debt facility agreements with Bantry Bay and Hilco.
Superdry: The embattled retailer told investors the restructuring plan will include rent reductions at 39 UK sites
Superdry shares fell by 28.63 per cent to 5.71p in Tuesday morning trading.
Superdry, known for Japanese graphics on its t-shirts and hoodies, also revealed plans of a £10million equity raise, which will be funded by founder and chief executive Julian Dunkerton.
In a statement, the firm said the business will benefit from ‘significant cost savings associated with being listed’.
It added delisting will help the firm help ‘implement its turnaround plan away from the heightened exposure of public markets’.
Julian Dunkerton said: ‘Today’s announcement marks a critical moment in Superdry’s history.
‘My decision to underwrite this equity raise demonstrates my continued commitment to Superdry, its stakeholders, its suppliers and the people who work for it.’
Peter Sjӧlander, chairman of Superdry, added: ‘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.’
The retailer, which employs about 3,350 people across the world and runs 216 shops alongside franchised stores, has endured challenging trading in recent years.
It has posted just one year of profitability since 2020.
The group posted an adjusted pre-tax loss of £25.3million for the six months to 28 October, up from a £13.6million loss last year.
Revenues plummeted 23.5 per cent to £219.8million over the period.
Last month, Dunkerton, who has a 26 per cent stake, failed to complete a full takeover of the British retailer, thus ending a two-month pursuit.
Dunkerton, who set up the company in 1985, walked away from takeover talks after he approached the firm in February over a possible offer for shares he did not already own.
Both he and the board concluded that any offer made was unlikely to be enough to help the firm deliver its turnaround and cost-saving plans.
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