Superdry seeks to delist in London, launches restructuring plan
Apparel brand Superdry seeks to delist from the London Stock Exchange to deliver significant annual cost savings as it works towards a more financially sustainable operating model.
C-Retail, Superdry’s subsidiary that owns its leasehold portfolio, is also launching a restructuring plan for its UK property estate and retail cost base.
The company proposed an equity raise of up to €8 million (A$13.3 million) through an open offer or £10 million (A$19.4 million ) through a placing.
Along with the recently secured £20 million (A$38.8 million) debt facilities from Hilco, the equity raise will provide Superdry with the liquidity headroom to implement the restructuring plan.
The open offer will be fully underwritten by Superdry co-founder and CEO Julian Dunkerton. Meanwhile, the placing would be open to Dunkerton alone, with the pre-emption rights of existing shareholders disapplied.
The restructuring is expected to result in rent reductions on 39 UK sites and an extension of the maturity date of loans from Bantra Bay and Hilco.
Unless the restructuring comes into effect, Superdry will need to enter administration while other companies within the group will need to enter into administration or an equivalent insolvency process.
The group aims for a revenue of £350 million (A$678.3 million) to £400 million (A$775.2 million) and a mid to high-single digit EBITDA margin under the operating model it is aiming for.
The company expects the restructuring plan to take effect in June and the delisting in July.
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