Superdry to run emergency sale if creditors block restructuring plan

Superdry is plotting a four-week auction in the case of creditors blocking its restructuring plans, which was announced last month.

The restructuring plan, which will need to be accepted by creditors in the coming weeks, details how the Founder Julian Dunkerton, will inject millions of his money to secure the brand’s "long-term future", avoiding insolvency.

According to a document circulated to creditors in recent days, seen by Sky News, rejection of the restructuring plan would be followed by a four-week sale process. The most likely outcome of this would be a pre-pack administration deal.

The rescue bid sees Julian Dunkerton provide £8 million in an open offer available to other shareholders or £10 million in a placing that would only be accessible to him. This happen prior to Superdry delisting from the London Stock Exchange.

At the time of announcing the restructuring plan, Dunkerton said: "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."

Dunkerton's willingness to put his cash, and neck, on the line reflects his confidence in the turnaround plans.

Last month, Superdry's rescue bid, which will impose sizeable rent cuts to landlords, led the owner of its flagship Oxford Street store to prepare lawyers to block proposals.

M&G, the London-listed asset manager, has enlisted lawyers from Hogan Lovells to scrutinise a restructuring plan. Other Superdry landlords, including Landsec, are also understood to be monitoring the situation.