Superdry publishes restructuring plan to secure its 'long-term future'

Superdry has today confirmed its restructuring plan, laying out a blueprint to achieve group revenue between £350-400 million. In order to get the troubled retailer back on track, it has announced rent reductions, an equity raise, and is delisting from the London Stock Exchange.

Together, the restructuring plan, equity raise and delisting will allow Superdry to drive "towards a viable and sustainable future". The package as a whole requires each section to be approved by accreditors.

Restructuring Plan

Over a three-year period, this will facilitate amendments to the company’s leasehold obligations to reduce property-related losses. It will also affect amendments to the group’s debt facility agreements with its lenders, BB Funding, Bantry Bay and Hilco.

The restructuring plan, once completed, is expected to result in rent reductions on 39 UK sites and extensions on repaying loans with Bantry Bay and Hilco. The company explicitly states this will not affect its "suppliers, employees, and landlords of sites outside of the UK".

Equity Raise

On 28 March 2024, Superdry extended and increased its secondary lending facility with Hilco. However, it looks to garner further investment during the period of "difficult trading conditions".

The equity raise will be structured in one of two different ways:

Option A: An open offer at £0.01 per share to raise gross proceeds of the sterling equivalent of up to €8 million (the "open offer:).

Option B: A placing at £0.05 per share to raise gross proceeds of £10 million (the "placing").

The open offer would be fully underwritten by Co-founder and CEO Julian Dunkerton, which ensures that the group would receive the full €8 million. The placing would be open to Julian Dunkerton only.

Delisting

Given the material changes to the company’s business under the restructuring plan, Superdry said it best to implement these changes away from the heightened exposure of public markets.

As a result, subject to shareholder approval at the general meeting, the company intends to make the relevant applications to end its trading on the London Stock Exchange’s Main Market.

Peter Sjӧlander, Chairman of Superdry, said: "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."

Julian Dunkerton, Co-founder and CEO of Superdry, added: "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 brand remains as strong today as it was when I founded the business."

The company provided the following anticipated timetable:

• Publication of PSL - 16 April 2024.
• Restructuring Plan Convening Hearing - 16 May 2024.
• Publication of Circular - May 2024.
• General Meeting - June 2024.
• Restructuring Plan Sanction Hearing - 17 and 18 June 2024.
• Restructuring Plan becomes effective June 2024.
• Delisting - July 2024.
• Equity Raise completes July 2024.