Superdry's survival plan sees landlords face rent cuts

Superdry is set to publish a formal restructuring plan to save the struggling retailer from collapse. The blueprint foresees steep rent cuts at a large number of its 94 shops on British soil.

In January, the retail business said it was looking at various "cost-saving options" after reports it was considering a major restructuring that could include store closures and job cuts. The business, which employs around 3,350 workers globally, runs 216 shops alongside franchised stores.

The troubled retailer’s new restructuring plan may come as soon as Tuesday, according to Sky News.

Though rent cuts lay on the horizon, the new tactics avoid shop closures. The scale of the proposed rent cuts will be determined by each store's financial performance, City sources said. Superdry's suppliers, however, are not expected to face significant cuts in the restructuring proposal.

Earlier this year, the business revealed talks between Dunkerton and US investor suitors over a possible takeover deal.

Last month, it was announced that Co-founder and CEO Julian Dunkerton - who owns 30% of Superdry - would not lead a takeover of the troubled fashion brand. This caused shares to tumble by nearly 50% to lows of around 13p per share, in a sign that shareholders were unimpressed by the takeover talks being abandoned.

Superdry said takeover talks ended "in respect of alternative structures, including a possible equity raise fully underwritten by Julian Dunkerton, which would provide additional liquidity headroom for the company's turnaround plan".

"It is expected that any equity raise would be at a very material discount to the current share price."

Superdry also recently confirmed that it had agreed on an extension and increase to a lending facility from Hilco Capital.